EUR/GBP gains further traction, jumps to 4-week high at 0.8540

The EUR/GBP cross is seen building on to its last week's BOE-led gains and has now risen to a fresh 4-week high level to currently trade within striking distance of 0.8550 region.

The pair is benefitting from selling pressure around the British Pound, which remained suppressed amid increasing prospects of further easing by BOE. 

Meanwhile, in absence of any major economic releases the shared currency remained confined within a broad trading range and is further assisting the pair to continue scaling higher and build on to its recent gains. 

Focus now shifts to today macro releases from UK that includes - manufacturing and industrial production data along with the release of trade balance data. Since today's data pertains to pre-Brexit regime, a stronger-than-expected reading is unlikely to trigger a reversal in the near-term downward trajectory for the British Pound and hence, seems unlikely to pose any immediate barrier to the EUR/GBP pair's upward trajectory.

Technical levels to watch

From current levels, the cross seems more likely to extend its bullish momentum towards July daily closing highs resistance near 0.8580 region, above which a fresh leg of up-move might assist it to surpass post-Brexit swing high resistance near 0.8627 and head towards testing August 2013 monthly high resistance near 0.8650 region.

On the flip side, 0.8500 psychological mark now becomes immediate support, which if broken might trigger a short-term corrective move that could drag the pair immediately towards 20-day SMA support near 0.8400 round figure mark.