GBP/JPY headed back to session low near 130.00 mark

Following a sharp reversal of nearly 140-pips from daily peak level at mid-131.00s, the GBP/JPY seems to have found some temporary support close to 130.00 handle.

Currently trading within striking distance of session low support near 130.25 region, a surprisingly stronger UK manufacturing PMI provided a much needed respite for the British Pound, which was offered heavily on Monday following Britain's PM Theresa May commented over the Brexit timing that would initiate the process of ending UK's membership with the European Union. 

Moreover, a bid tone surrounding the USD/JPY major amid prevalent risk-on sentiment also contributed towards limiting further downslide and helped the cross to defend 130.00 psychological mark support. 

Up next, the release of US ISM manufacturing PMI would derive the safe-haven demand of the Japanese Yen and also provide fresh impetus for the GBP/USD, eventually providing some short-term momentum play for the GBP/JPY traders. 

Technical levels to watch

Bulls will be disheartened if the cross fails to hold and rebound from 130.00 immediate support below which a fresh leg of weakness is likely to drag it towards 129.00 round figure mark with September monthly lows near 129.70-65 acting as intermediate support.

On the flip side, any recovery attempt might now confront immediate resistance near 130.70 level, which is closely followed by 131.00 round figure mark. A follow through recovery might now be capped at an important resistance near 131.50 level.