• The GBP/JPY cross extended the previous session’s pullback from near three-week tops and weakened farther for the second straight session on Tuesday.
• The intraday bearish pressure remained unabated following the release of awful UK construction PMI, which added to Monday’s weaker manufacturing PMI.

Sustained weakness below a confluence support – comprising of 100-hour SMA and 38.2% Fibo. level of the 135.37-137.80 recent corrective bounce from multi-month lows, was seen as a key trigger for intraday bearish traders.

A subsequent slide below 200-hour SMA and 50% Fibo. level now seems to have paved the way for the resumption of the prior/well-established bearish trajectory amid heightened UK political and economic uncertainty.

Meanwhile, technical indicators on 4-hourly/daily charts maintained their bearish bias and add credence to the negative outlook, albeit slightly oversold conditions on the 1-hourly chart might help limit deeper losses.

A follow-through selling below 61.8% Fibo. level, around the 136.30-25 region, will reinforce the bearish bias and accelerate the slide towards testing sub-136.00 level en-route mid-135.00s and multi-month lows.

GBP/JPY 1-hourly chart