EUR/GBP climbs to session high of 0.7623 post US data

The EUR/GBP pair surged to session high of 0.7623 as the EUR/USD pair surged past 1.1200 handle post the release of US economic data while the GBP/USD pair held static at 1.4700 handle.

The British Pound's under-performance against the shared currency on Thursday could be on the back of slight disappointment from the second estimate of UK GDP growth for the first quarter of 2016. UK economy registered 2% y-o-y growth, which was below consensus expectations of 2.1%, while the q-o-q growth matched consensus forecast and initial estimate of 0.4% growth. In other data, UK Prelim Business Investment dropped -0.5% from previous quarter, and was also below expectations of an increase of 3.2%.

However, fading 'Brexit' fears on increasing support for the 'Remain' camp should continue extending support and restrict any near-term sharp decline for the British Pound.

Technical levels to watch

From current levels, the pair seems to extend its recovery towards 0.7635-40 horizontal resistance, above which the up-move could further get extended towards the very important 0.7700 handle.

Conversely, failure to build on to its gains and a drop back below 0.7600 level, leading to a subsequent break through Wednesday's low support near 0.7565, would turn the pair vulnerable to extend its downward trajectory towards testing the very important 200-day SMA support near 0.7520 level.