EUR/GBP finds some support near 0.8450 after German CPI

The EUR/GBP cross remained well offered near 6-day lows and failed to gain any respite from upbeat German CPI print.

Currently trading around 0.8460-65 band, today's better-than-expected German employment figures and upbeat CPI print for December failed to attract any buying interest around the shared currency, albeit helped the cross to halt Friday's sharp reversal move from mid-0.8600 level for the time being. 

Earlier during the day, the cross came under renewed selling pressure on Tuesday after UK manufacturing PMI print for December surpassed even the most optimistic estimates and rose to 30-month high. Moreover, an intense selling pressure surrounding the EUR/USD major further contributed to the offered tone surrounding EUR/GBP cross. 

A slew of important macro releases, scheduled at the beginning of a new month, would continue to grab attention and would assist investors to determine the pair's next leg of directional move. 

Technical levels to watch

A follow through selling pressure below 0.8450 region is likely to drag the cross to sub-0.8400 level, towards testing its next support near 0.8385-80 region ahead of multi-month lows support near 0.8335-30 horizontal support. On the upside, any recovery momentum might now confront resistance near 0.8500 psychological mark, which if cleared decisively might trigger a short-covering rally back towards 0.8545-50 horizontal resistance, en-route 50-day SMA resistance near 0.8600 handle.