EUIR/GBP tumbles to 0.8400 neighborhood on surprisingly strong UK PMI

A surprisingly stronger than expected UK manufacturing PMI boosted the British Pound across the board, with the EUR/GBP cross tumbling to a fresh 4-week low level.

Currently hovering around 0.8405-10 band, the cross is challenging 50-day SMA immediate support after UK Markit Manufacturing PMI surpassed expectations and came-in to show a 10-month high print of 53.3. 

Meanwhile, a softer tone surrounding the shared currency, ahead of the final Euro-zone manufacturing prints, also contributed to the sharp slide in the EUR/GBP cross.

Technical levels to watch

On a sustained weakness below 50-day SMA support near 0.8405, the cross seem to extend its near-term corrective move towards initially towards 0.8365 intermediate support and eventually towards an important horizontal support near 0.8325 level.

Meanwhile on the upside, any recovery attempt might now confront strong resistance near 0.8470 level, which if cleared might negate near-term bearish bias and help the pair to reclaim 0.8500 psychological mark.