EUR/GBP digesting yesterday’s sharp recovery move, remains capped below 0.85 mark

The EUR/GBP cross was seen consolidating previous session's sharp recovery move from 2-month low near 0.8400 handle. 

Currently trading around 0.8480 region, off around 15-pips from daily peak, the cross struggled to build on yesterday's gains and remained capped below 0.85 psychological mark amid some renewed selling pressure around the shared currency. Investors remained reluctant from buying the Euro in wake of the ongoing political instability in the region.

Meanwhile, a mildly offered tone around the British Pound, against the backdrop of Wednesday's reversal led by a downward revision of yearly UK GDP growth and disappointing business investment figures, was seen lending some support and limiting any immediate sharp downslide for the EUR/GBP cross.

With a relatively lighter economic docket on Thursday, the cross remains at the mercy of any fresh development / news surrounding the political scenario in the Euro-zone. 

Technical levels to watch

On a sustained move above 0.85 mark, the cross is likely to extend the recovery trend towards 0.8520 intermediate resistance before darting towards 50-day SMA hurdle near 0.8545 region. Alternatively, weakness back below 0.8460-55 immediate horizontal support, leading to a subsequent break below 0.8445 level, would negate Wednesday's recovery and turn the cross vulnerable to head back towards retesting 0.8400 handle.