EUR/GBP digesting Friday’s strong up-surge to nearly 1-month highs

The EUR/GBP cross was seen consolidating Friday's strong up-surge beyond 100-day SMA hurdle, to nearly one-month highs.

Currently trading with minor losses around 0.8625-30 region, a mildly negative tone surrounding the EUR/USD major, following Friday's sharp reversal, has failed to assist the EUR/GBP cross to build on to its ongoing recovery move from late Feb. lows near the 0.8400 handle. 

Meanwhile, a subdued price action around the GBP/USD major, against the backdrop of renewed Brexit worries, also did little to provide any follow through impetus, leading to a range-bound price action within 15-20 pips trading band. 

Traders now look forward to the Euro-zone economic docket, featuring the release of Retail PMI and Sentix Investor Confidence index, for some short-term trading impetus. However, the broader trend would remain dependent on this week's key event risk - ECB monetary policy decision on Thursday.

Technical levels to watch

Immediate support on the downside is pegged at 100-day SMA near 0.8610 region, below which the cross is likely to slide back towards 0.8580-75 intermediate support ahead of 0.8545 strong support. On the upside, momentum above 0.8640 region is likely to accelerate the up-move towards 0.8670 resistance, en-route 0.8700 round figure mark.