EUR/GBP testing highs after disappointing UK retail sales

The EUR/GBP cross caught fresh bids and jumped to fresh session peak near 0.8660-65 band after disappointing UK retail sales data.

Data release just a short while ago showed UK retail sales contracted sharply by 1.9% on monthly basis, taking the yearly growth to 4.9%. Consensus estimates were anticipating a tepid monthly growth of 0.2% and 7.8% on yearly basis. 

Highly disappointing UK retail sales data did attract some selling pressure around the British Pound, albeit was negated by an offered tone surrounding the shared currency, thus, restricting any follow through up-move in the EUR/GBP cross. 

Technical levels to watch

On a sustained break below 0.8625 immediate support the cross seems to head back towards 0.8610-0.8600 support area below which a fresh leg of weakness is likely to extended the slide further towards 0.8555-50 zone, en-route 50-day SMA support near 0.8530 region.

Meanwhile, 0.8660-65 region might continue to act as immediate resistance, which if cleared decisively has the potential to lift the cross beyond 0.8700 handle towards testing its next hurdle near 0.8720-25 region ahead of 0.8750-55 region.