EUR/GBP trims upbeat EZ data-led strong gains to near 8-week highs

The EUR/GBP cross trimmed some of its strong gains and retreated around 25-pips from the highest level since late March, albeit has managed to hold in positive territory for the third consecutive session.

Today's upbeat German Ifo Business Climate Index, rising to all-time-high of 114.6 in May helped the cross to build on its recent up-move over the past couple of week. Adding to the impressive German Ifo index, the composite Euro-zone PMI print pointed to stronger broad based business expansion in the region and provided an additional boost to the shared currency.

   •  Eurozone: Drumbeat of favorable data continued - BBH

Meanwhile, a mildly negative sentiment surrounding the British Pound, following a terrorist attack in the city of Manchester and the latest developments surrounding the impending Brexit negotiations, further collaborated to the pair's strong up-move to nearly eight week highs.

   •  Brexit bill continues to make headlines but GBP is proving resilient - Nomura

The cross, however, failed to build on data-led gains as traders seemed inclined to take some profits off the table, especially after its recent up-surge of 175-pips in just 4-trading session. 

Technical levels to watch

Immediate support is pegged near 0.8635 area (session low), below which the cross is likely to extend the corrective slide towards the 0.8600 handle before heading towards its next support near 0.8575 region.

On the upside, 0.8675 level now seems to have turned as immediate hurdle, above which the ongoing bullish trajectory should lift the pair beyond the 0.8700 handle towards testing its next major hurdle near 0.8730-35 zone.