GBP/JPY deflates to session low at 130.50

Having posted a session high at 131.19, the GBP/JPY cross turned sharply lower and has now dropped to a fresh session low level to currently trade around mid-130.00s ahead of UK services PMI.

The pair's slide from session high could be attributed solely to the prevalent bearish sentiment surrounding the British Pound, which remains under intense selling pressure across the board amid renewed concerns of a 'hard Brexit', with the GBP/USD pair breaking below 1.2700 handle to hit a fresh 31-year low. 

Despite of a sharp slide in the sterling since the beginning of this week, the cross has managed to hold 130.00 handle and has been confined in a broader trading range as offered tone around the Japanese Yen, on diminishing safe-haven flow, is limiting sharp downslide. 

Today's release of UK services PMI would now be looked upon for some immediate respite for the British Pound and could assist the cross to find some buying interest at lower levels. 

Technical levels to watch

From current levels, 130.00 psychological mark seems to protect immediate downside below which the cross is likely to head back towards September monthly low support near 129.70-65 area before eventually dropping to its next major support near 129.00 round figure mark.

On the upside, any recovery attempts might now confront immediate resistance near 131.00 handle above which the cross is likely to extend the recovery towards 131.50 resistance.