GBP/JPY sits at 2-week tops ahead of BOE

The GBP/JPY cross continued gaining bullish traction for the fourth consecutive session and refreshed two-week tops, near the 146.80 region following the release of UK services PMI.

The British Pound rose across the board after the UK services sector activity rebounded from four month low, with the services PMI bettering expectations and coming in at 53.8 in July as compared to previous month's reading of 53.4. 

The up-move, however, lacked any strong follow through momentum as investors seemed to have turned cautious ahead of the very important BoE's Super Thursday. The central bank is widely expected to leave interest rates unchanged but the MPC vote distribution would have a larger impact on the British Pound. 

Meanwhile, a consolidative price action around the USD/JPY major did little to support the pair's bullish momentum, with the bid tone surrounding the sterling acting as an exclusive driver of the pair's movement on Thursday. 

Technical levels to watch

On a sustained move beyond the 147.00 handle, the cross is likely to aim towards retesting July daily closing highs resistance near 147.45 level before eventually darting towards reclaiming the 148.00 handle. 

Meanwhile, on the downside, 146.20 level now becomes an immediate support to defend, which if broken could drag the pair back below the 146.00 handle towards its next support near the 145.70-65 region.