EUR/GBP taps 0.8500 for the first time since Nov. 2013

A fresh round of selling pressure seems to have emerged around the British Pound that assisted the EUR/GBP cross to hit 0.8500 handle for the first time since late Nov. 2013.

Earlier during European trading session, a slight disappointment from UK services PMI trigger the initial leg of weakness for the British Pound. The fall got aggravated once the GBP/USD pair broke below 1.3200 handle that could have possibly triggered stop-losses for some aggressive long positions and led to a sharp slide to a fresh 31-year low level. 

Meanwhile, the shared currency remained well supported by mostly in-line with expected final Euro-zone PMI prints. Going forward, the cross would continue to take cues from any further developments / news surrounding the historic Brexit referendum.

In the meantime, bulls might continue to seek respite from some additional UK economic data, which includes - Manufacturing Production and Goods Trade Balance, slated for release during the latter part of the week.

Technical levels to watch

The ongoing bullish momentum could gain further traction if the pair manages to sustain its strength above 0.8500 psychological mark, above which the pair seems all set to head towards Oct. 2013 highs resistance near 0.8580 region. On the flip side, 0.8400 now becomes immediate support to defend, below which the cross seems to witness a near-term corrective move that could drag it back towards retesting 0.8200 support.