GBP/JPY recovers to move back above 133.00 handle after UK data

After an initial downward spike to 1.3280 region, the GBP/JPY cross has managed to bounce-off session low and is currently trading back above 133.00 handle after the release of UK data.

The Office for National Statistics (ONS) published the industrial and manufacturing production data for the month of June. The report showed a tepid rebound in industrial production but the overall manufacturing activity showed deceleration for second straight month in June. 

Meanwhile, UK goods trade balance for June bulged to 12.4 billion pounds as compared to 9.6 billion expected and 11.5 billion (revised higher) recorded in May. 

Despite of weaker economic data, the British Pound seems to have found some buying interest at lower levels that helped the GBP/JPY cross to recover from session low and move back above 133.00 handle.

Technical levels to watch

Any further recovery might continue to face strong resistance at 134.00 round figure mark, above which the momentum could get extended towards a short-term descending trend-channel resistance near 134.40-50 region.

On the flip side, sustained weakness back below 133.00 mark, and a subsequent drop below session low support near 132.80, is likely to drag the pair immediately towards 132.00 round figure mark before extending its near-term downward trajectory towards its next major support near 131.00 round figure mark.