EUR/GBP flat above 0.8400, eyeing EU CPI and GDP for fresh impetus

Following a dip below 0.8400 handle, the EUR/GBP cross managed to recover its lost ground and is now trading flat around 0.8415-20 band. 

Following Thursday’s break-out from near-term trading range and a subsequent jump to a two-week high level of 0.8451, early Asian trading dip below 0.8400 handle was utilized to build fresh long positions. 

The cross, however, has failed to extend its up-move and had a muted reaction to today's upbeat UK releases that showed Mortgage Lending, Net Lending to Individuals, M4 Money Supply and BoE Consumer Credit all surpassing market expectations, with the only disappointment came from Mortgage Approvals.

Market now await for the release of some important macro releases from Euro-zone, which would determine the near-term trajectory for the shared currency and eventually drive the EUR/GBP cross. 

Technical levels to watch

On the immediate upside, bulls would be aiming to conquer 0.8450 resistance, above which the cross seems all set to resume its near-term bullish momentum and head towards reclaiming 0.8500 psychological mark before extending its upward trajectory towards its next major resistance near 0.8580 region.

Conversely, on a sustained weakness below 0.8400 level, and a subsequent break below 0.8360 horizontal support, now seems to turn the pair vulnerable to extend its near-term corrective move, even below recent swing lows support near 0.8250 area, towards testing sub-0.8200 level (0.8180 region) marking 50-day SMA.