EUR/GBP surges through 0.8600 handle

The EUR/GBP cross maintained its strong bid tone for the third consecutive session and has now moved back above 0.8600 handle, to 5-day high.

Currently trading around 0.8620-25 band, today's Euro-zone macro data, showing higher-than-expected rise in inflation and faster-than-expected GDP growth figures, helped the shared currency to maintain its outperformance against the British Pound.

Adding to this, FT news report revealing comments from the head of Trump's new National Trade Council, Peter Navarro, that Germany is using a grossly undervalued euro to exploit the US and its EU partners lifted the shared currency across the board and also collaborated to the pair's strong up-surge.

Meanwhile, a mild recovery witnessed around the GBP/USD major restricted further upside, at-least for the time being. 

Technical levels to watch

Immediate upside resistance is pegged at 100-day SMA near 0.8650 region (Jan. 24 high), which is followed by resistance near 0.8675-80 horizontal zone. A follow through buying interest is likely to assist the cross back towards reclaiming 0.8700 handle, en-route 0.8720 hurdle. 

On the flip side, 0.8600 round figure mark now becomes immediate support to defend below which the cross is likely to drop back towards 0.8570-65 support ahead 50-day SMA strong support near 0.8525 region.