Sterling Stalls on Soft PMIs: GBPJPY Navigates Growth Deceleration as BoE Rate Cut Odds Rise

GBPJPY trades in narrow range between 210.80 and 213.31 for the past one week. At 212.98, it reaches an intraday low; now trading around 212.607.

Released today, March 24, the S&P Global Flash PMIs for March 2026 indicate a significant deceleration in the growth of the private sector to a 10-month low. The composite PMI dropped to 51.0 (previously 53.7, exp ~52.9), and the services PMI fell to 51.2 (previously ~54.0, exp 53.0), reaching a 7-month low. Meanwhile, manufacturing output plunged to 17-18 month lows due to high costs and low demand caused by tensions from the war in Iran. As energy shocks drove up input inflation, new orders fell across industries; the statistics indicate 0.3% Q1 GDP but increase the likelihood of a BoE May rate cut as the recovery frays.

 Major support-  211.95/211.35/210.70/210/209.48/208. Major resistance - 213.15/214/215.

It is good to buy on dips around 212 with SL around 210.80 for a TP of 215B.