GBP/JPY Price Analysis: Advances to 184.00 as market sentiment improves

• GBP/JPY approaches 184.00 as the risk-aversion theme eases.
• UK’s Manufacturing PMI remains below the 50.0 threshold for the 14th time in a row.
• GBP/JPY trades in a Rising Channel pattern in which each pullback is considered a buying opportunity.

The GBP/JPY pair falls back after the S&P Global reported a nominal improvement in the United Kingdom’s Manufacturing PMI for September. The economic data landed at 44.3, marginally higher than expectations and the former release of 44.2. The Manufacturing PMI remains below the 50.0 threshold for the 14th time in a row as firms continue to operate at lower capacity due to a deteriorating demand environment.

Investors await the UK Finance Minister Jeremy Hunt’s speech at the annual Conservative Party conference. Jeremy Hunt is expected to raise minimum pay wages at least by 11 pounds to ease households’ burden against stubborn inflation.

GBP/JPY trades in a Rising Channel chart pattern on a four-hour chart in which each pullback is considered a buying opportunity by the market participants. The cross rebounds from below 181.00 and climbs above the 20-period Exponential Moving Average (EMA), which trades around 182.20.

The Relative Strength Index (RSI) (14) aims to shift into the bullish range of 60.00-80.00. If the RSI (14) manages to do so, a bullish impulse will get triggered.

A recovery move above September 19 high at 183.50 would drive the asset toward September 5 high at 185.75, followed by August 22 high at 186.77.

On the flip side, a breakdown below September 21 low at 180.82 would drag the asset further toward July 20 low at 179.74 and July 26 low at 176.32.

GBP/JPY four-hour chart