EUR/GBP lower for sixth straight session, but holds 0.8350 support

Having posted a session low near 0.8350 region, the EUR/GBP cross has managed to recover some of its lost ground and is currently trading around 0.8370 region.

The British Pound outperformed its European counterpart as the incoming UK PMI prints have been indicating that the UK economy has managed to withstand the initial negative shock from the historic Brexit referendum. 

Tuesday's release of the final composite Euro-zone GDP growth number, which was in-line with consensus estimates, provided little respite for the bulls. The pair eventually maintained its negative bias for sixth straight session and is now sustaining its weakness below 50-day SMA. 

Meanwhile, the cross has managed to hold and bounce-off one-month lows support near 0.8350 region. The recovery, however, lacked momentum and the cross remained capped below 0.8400 support break-point.

Technical levels to watch

On a sustained weakness below 0.8350 immediate support, the cross is likely to accelerate the slide immediately towards 0.8300 handle before aiming towards testing its next major support at 100-day near 0.8225 region.

Meanwhile on the upside, 50-day SMA support break-point near 0.8400 region now seems to act as immediate resistance above which the recovery could get extended towards 0.8475-80 resistance with intermediate hurdle near 0.8440 level.