GBP/JPY technical analysis: Moves little post-UK PMI, hangs near multi-month lows ahead of BoE

• The GBP/JPY cross extended its overnight rejection slide from the 133.00 congestion zone and is now flirting with a short-term ascending trend-line support.
• The cross moved little post-UK manufacturing PMI and remained well within the striking distance of multi-month lows, set earlier this week on Tuesday.

Meanwhile, technical indicators on hourly charts have recovered from the oversold territory and maintained their bearish bias, supporting prospects for an eventual breakdown and an extension of the near-term depreciating move.

Sustained weakness below mid-131.00s – coinciding with early-January swing lows, will reinforce the negative outlook and turn the cross to break through the 131.00 handle to test its next support near the 1.3065 region.

The downfall could further get extended towards challenging the key 130.00 psychological mark, albeit oversold conditions on the daily chart might turn out to be the only factor helping limit deeper losses, at least for some time.

Alternatively, any attempted recovery now seems to confront some fresh supply near the 132.45-50 region, above which a bout of short-covering might assist the cross to aim back towards reclaiming the 133.00 round figure mark.

GBP/JPY 1-hourly chart