GBP/JPY rises to fresh 2-1/2 month high

• GBP/JPY extends three-day winning streak on Brexit optimism.
• Focus on UK PMI.

GBP/JPY rose to 152.41; the highest levels since Sep. 22.

The cross has rallied close to 66 pips since Tuesday on Brexit optimism. The weak tone in the Japanese Yen has also played a role in pushing the GBP/JPY higher.  

Focus on UK PMI

The PMI is expected to rise slightly to 56.5 in Nov. from the previous month's print of 56.3 but may beat estimates by a wide margin if we take into account the fact that CBI survey reported manufacturing orders at a 30-year high.

A better-than-expected could help GBP/JPY post new yearly highs above 153.00 levels. On the other hand, a weak number could yield a pullback, although it could be short-lived if Brexit optimism continues to grow.

GBP/JPY Technical Levels

The cross was last seen trading around 152.30. A break above 152.86 (Sep. 21 high) would expose 153.63 (late April 2016 low) and 154.00 (zero levels). On the downside, a move below 151.94 (Nov. 1 high) could yield a sell-off to 151.39 (Oct. 25 low) and 151.00 (psychological levels).