EUR/GBP turns mildly positive after UK PMI

After an initial dip to mid-0.8900s, the EUR/GBP cross caught fresh bids and has now jumped to fresh session peak after slight disappointing UK manufacturing PMI.

Currently trading around 0.8980 region, the cross gained traction after UK manufacturing PMI for the month of October fell short of market expectations and dropped to 54.3 as compared to 55.5 recorded in the previous month. Meanwhile, the ongoing recovery momentum around the EUR/USD major is further supporting the bid tone surrounding the cross. 

Further momentum, however, might be limited as BoE Governor Mark Carney's announcement to continue serving as head of the central bank until June 2019. The decision has been seen as positive development while UK prepares to begin negotiations to end its membership with the European Union and could also contribute towards easing concerns over possibility of 'hard Brexit'. Moreover, market participants also await for BoE's super Thursday, which would provide fresh impetus for the pair's next leg of directional move. 

Technical levels to watch

From current levels 0.9000 psychological mark is likely to act as immediate hurdle above which a fresh bout of short-covering is likely to lift the pair immediately towards 0.9025 en-route its next major resistance near 0.9045-50 region. On the downside, 0.8960-55 area now becomes immediate support to defend, which if broken is likely to accelerate the slide towards 0.8900 handle.