EUR/GBP extends recovery move, UK Autumn statement in focus

The EUR/GBP pair's recovery from sub-0.8500 handle gained traction for the second straight session and is being supported by Euro-zone PMI prints.

Currently trading around 0.8575-80 band, testing session peaks, the cross remained underpinned by better-than-expected flash Euro-zone PMI prints. The composite Euro-zone manufacturing PMI jumped to 54.1 in November as compared to October's 53.5 and 53.3 expected.  Meanwhile, services PMI also rose faster-than-expected and came-in at 54.1 versus 53.0 expected, up from 52.8 recorded in the previous month. 

Euro bulls, however, seemed unimpressed with upbeat Euro-zone PMI numbers, which seems to have been negated by slightly lower-than-expected manufacturing PMIs from the regions two biggest economies - Germany and France, albeit the pair held on to tepid gains. 

Later during the day, UK Chancellor Philip Hammond will grab the spotlight when he presents the government's first "Autumn Forecast Statement" on the state of the economy after the historic Brexit vote and would be looked upon for fresh impetus.

Technical levels to watch

From current levels, weakness below 0.8550 immediate support would turn the cross vulnerable to head back towards retesting 0.8500 psychological mark below which a fresh leg of weakness could drag it further towards 0.8460 intermediate support en-route 0.8425 strong horizontal support.

On the upside, bullish momentum above 0.8600 handle opens room for an immediate up-move towards 0.8640 resistance, which could further get extended towards 0.8700 round figure mark.

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