EUR/GBP jumps to 0.8600 after UK services PMI

The EUR/GBP cross caught some fresh bids and jumped to the top end of 30-pips daily trading band following the release of UK services PMI.

Currently hovering around 0.8600 region, disappointing release of UK services PMI print, coming-in at 54.8 for January vs 55.8 expected and previos month's 56.2, helped the cross to build on to yesterday’s strong up-move, led by disappointment from BoE’s Quarterly Inflation Report. 

Meanwhile, a minor upward revision to the final Euro-zone PMI prints went unnoticed and an offered tone around the EUR/USD major might restrict further up-side. 

Later during the day, the US monthly jobs report (NFP) could have diverging effect on the British Pound and the shared currency, and hence, might provide some impetus for traders during early NA session.

Technical outlook

A follow through selling pressure below 0.8580 level is likely to accelerate the slide towards 0.8510-0.8500 strong support, which if broken would turn the pair vulnerable to head back towards Jan. monthly lows support near 0.8450 level, with 0.8470 (Jan. 26 low) acting as intermediate support.

On the upside, sustained move above 0.8600 handle is likely to face resistance near 0.8625-30 region above which the cross is likely to head towards testing 100-day SMA hurdle near 0.8655 region before attempting a move towards reclaiming 0.8700 handle.