EUR/GBP ranging in a narrow band ahead of UK PMI

On the last trading day of the week, the EUR/GBP cross traded within a narrow trading band around 0.8430-35 band ahead of UK construction PMI. 

On Thursday, the pair dropped below 50-day SMA support and plummeted below 0.8400 handle on surprisingly stronger-than-expected UK manufacturing PMI print for the month of August before paring some of its losses. 

Despite of its rebound from Thursday's four-week lows, the cross traded with negative bias for fourth consecutive session on Friday and now seems all set to post second consecutive week of declines.

On the economic data front, UK construction PMI data will be looked upon for fresh impetus during European session ahead of the US NFP release, later during NA trading session, which could have diverging effect on the shared currency and the British Pound and eventually drive the EUR/GBP cross. 

Technical levels to watch

From current levels, 50-day SMA near 0.8405-0.8400 region remains immediate support to defend, which if broken decisively seems to drag the pair immediately towards 0.8360-55 horizontal support before heading towards its next major support near 0.8330-25 region.

On the upside, any recovery attempt above 0.8450 immediate resistance now seems to confront a major hurdle near the recent trading range support break-point around 0.8500 psychological mark with 0.8470-75 acting as intermediate resistance.