EUR/GBP back above 0.8600 after EU GDP release

The EUR/GBP cross resumed its bullish traction and jumped back above 0.8600 handle but now seems to be struggling in building on to its momentum. After hitting a session high of 0.8621, the cross has trimmed some of its gains to currently trade back around 0.8600 handle.

The pair's initial leg of up-move on Friday was led by better-than-expected German GDP print. However, in-line with estimates release of composite Euro-zone GDP for Q2 2016 failed to extend further support. 

Meanwhile, renewed selling pressure surrounding the British Pound also contributed to the pair's up-move for fifth straight session, close to yet another post-Brexit high touched on Thursday.

With an empty UK economic docket, traders now turn their focus to US releases that could have diverging effect on both the EUR/USD and the GBP/USD major and eventually drive the EUR/GBP cross.

Technical levels to watch

On a decisive move above 0.8620 level, the pair is likely to gain further traction that is likely to continue boosting the pair further towards August 2013 highs resistance near 0.8650 region.

Meanwhile on the downside, Thursday's low near 0.8575 level seems to provide immediate support, below which the cross seems to extend its slide towards 0.8500 psychological mark.