EUR/GBP weaker around 0.8450 ahead of UK PMI
|After Thursday's solid comeback from 3-month lows, the EUR/GBP cross again came under some selling pressure on Friday and has now drifted to session low ahead of UK construction PMI.
Currently trading around mid-0.8400s, receding fears of 'hard Breixt', after Thursday's comments from UK Brexit secretary David Davis and Euro-group President Jeroen Dijsselbloem, was seen helping the British Pound to outperform its European counterpart. Meanwhile, lack of any strong buying interest around the shared currency, amid uncertainty surrounding the Italian constitutional referendum on Sunday, has also failed to provide any respite to the cross, which now seems all set to post fifth consecutive week of declines.
On economic data front, UK economic calendar features the release of Construction PMI print for the month of November and would be a key highlight during European trading session.
Technical levels to watch
Immediate support on the downside is pegged 0.8440 level below which the cross is likely to again break through 0.8400 handle and head towards resetting 0.8375-70 (yesterday's low) support area. On the upside, any recovery beyond 0.8475 immediate resistance now seems to confront strong resistance near 0.8500 psychological mark above which a fresh bout of short-covering could lift the cross towards 0.8525-30 resistance area.
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