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GBP/JPY spikes to fresh session highs after UK PMI hits 7-month high

FXStreet (Mumbai) - GBP/JPY spiked to fresh session highs in the mid-European session after solid UK factory data that showed that activity in UK manufacturing sector strengthened above estimates in February, reaching seven month highs.

GBP/JPY rises from 184.76 levels post PMI

Currently, the GBP/JPY cross traded at 184.85 levels, up 0.12% on the day, quickly retreating from fresh session highs recorded at 184.93 immediately post the data release. The cross in GBP/JPY edged higher mainly due a falling Japanese yen against the US dollar amid higher yields on treasuries and strong US macro data.

On the other hand, the pound trimmed losses after Markit's Manufacturing Purchasing Managers' Index (PMI) measure ticked up to 54.1 compared to a revised reading of 53.1 in January, and remained in expansion territory for the 24th consecutive month.

As of writing, USD/JPY trades higher by 0.26% at 119.88 levels, while GBP/USD trades lower by -0.12% at 1.5419.

GBP/JPY Levels to consider

To the upside, the next resistance is located at 185.01 and above which it could extend gains to at 185.78 levels. To the downside immediate support might be located at 184 levels below that at 183.55 levels.

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