EUR/GBP regains traction, rises to 0.8580 ahead of UK PMI

After Thursday’s brief pause, the EUR/GBP cross regained traction on Friday and inched closer to multi-week tops resistance just below the 0.8600 handle. 

Currently trading around 0.8580-85 region, the cross has now erased previous session modest corrective slide in wake of some bargain buying interest surrounding the EUR/USD major, despite of disappointing German retail sales data on Friday. 

Moreover, investor remained reluctant to buy the British Pound amid renewed Brexit worries, especially after Wednesday's House of Lords vote to amend the Brexit bill, and is supportive of the pair's up-move from two-week lows touched last week. 

UK government first defeat to delay Brexit process? - Natixis

Meanwhile, market seems to have ignored release of the final Euro-zone services PMI prints, which came-in mostly in-line or better-than preliminary estimates. From UK, the release of services PMI, which is expected to tick lower to 54.2 in February from previous month's 54.5, would now be looked upon for fresh impetus. 

UK: February services PMI to come in a bit weaker than consensus - TDS

Technical levels to watch

Bulls would be aiming for a sustained momentum above 0.8600 handle, which could get extended even beyond 100-day SMA hurdle near 0.8620 region, towards testing its next major resistance near 0.8665-70 region. On the downside, 0.8550-45 area (yesterday's low) now seems to have emerged as immediate support, which if broken could drag the cross back towards 0.85 mark. A subsequent break below 0.85 important support would negate any near-term bullish expectations and turn the cross vulnerable to resume with its prior depreciating move.