GBP/JPY fails again to hold above the 146.00 handle ahead of BoE

GBP/JPY is about to end the day unchanged, as it stands around 145.70. The pair earlier reached levels on top of 146.00 but again, like it did last week, failed to hold and lost strength. 

Positive UK data ahead of BoE

The pair broke the relevant technical level of 145.80 during the European session boosted after UK data. It peaked at 146.15 but later on NY pulled back to the 145.80 - 145.40 range. Price continues to move within that range, consolidating ahead of the Super Thursday. 

The UK Manufacturing PMI came in at 55.1 in July up from 54.2. It represented the first acceleration in three months. After the report, the pound rose across the board. GBP/USD reached a fresh 11-month high at 1.3240. 

The data would be used as another input for the Monetary Policy Committee of the Bank of England that meets tomorrow. On Thursday, the decision and the minutes will be released. Also, the Inflation Report will be presented. At the last meeting, three MPC members voted for a rate hike, one of the dissenters departed. Thursday is expected to be a volatile day for the pound. 

Technical levels 

GBP/JPY was rejected again from above 146.00. If it manages to hold on top it could gain strength for a bullish extension, with a potential to rise to test July highs. 

To the upside, resistance levels might be located at 145.95 (20-day moving average), 146.55 (last week high) and 147.80 (Jul high). On the flip side, support could be seen at 145.35/40 (Aug 1 low), 144.80 (Jul 31 low), 144.00/05 (Jul 24 low).