EUR/GBP sustaining a move back above 0.8500 mark

Renewed selling pressure around the British Pound helped the EUR/GBP cross to recapture 0.8500 psychological mark and surged to a fresh session high level. 

Currently trading around 0.8510 region, the cross initially was seen struggling for direction amid thin liquidity and subdued trading action around the EUR/USD and the GBP/USD majors. The pair's latest leg of up-move in the past hour was solely driven by weakness around the British Pound, which remained under pressure across the board after BOE on Thursday left doors open for a further rate-cut in November.

In absence of any fresh economic releases either from Euro-zone or UK, the cross is likely to cues from any news coming out of the special EU leaders meeting called to discuss problems arising in wake of the Britain's historic referendum to end its membership with the EU.

Technical levels to watch

On a sustained move above 0.8510-15 session high resistance, the cross is likely to extend its upward trajectory towards 0.8535-40 horizontal resistance, which is followed by resistance at 0.8565 level. Meanwhile on the downside, decisive break back below 0.8500 handle, leading to a subsequent drop below 0.8470-65 support, the cross seems to head back towards testing 50-day SMA support near 0.8425-20 region.