GBP/JPY turns sharply lower, hits fresh session low at 130.50

A fresh bout of selling pressure seems to have emerged around the British Pound during early European session, with the GBP/JPY cross reversing all its tepid recovery gains to 131.50 region and now extending its reversal further below 131.00 handle. 

Currently trading around mid-130.00s, the cross ran through fresh offers amid renewed Brexit-led uncertainty following British Prime Minister Theresa May's comments over the timing to officially kick-start the process of ending UK's membership with the European Union. 
The prevalent uncertain environment is weighing on the British Pound and boosting the perceived safe-haven demand for the Japanese currency, eventually exerting a fresh bout of selling pressure around the GBP/JPY cross.

Later during European trading session, the release of UK manufacturing PMI would be looked upon for fresh impetus. Consensus estimates point to a reading of 52.1 suggesting continuing growth, albeit at a slower pace as compared to 53.3 in August. 

Technical levels to watch

From current levels, 130.10-130.00 psychological mark is likely to protect immediate downside, which if broken is likely to accelerate the slide towards 129.60 support area before the cross eventually drops to test 129.00 round figure mark.

Meanwhile on the upside, any recovery attempts might now confront immediate resistance near 131.00 round figure mark above which the momentum could get extended towards session high resistance near 131.50 region. A follow through buying interest above session high has the potential to lift the cross back above 132.00 handle, towards retesting last week's swing high resistance near 132.40-45 area.