EUR/GBP flat-lined at 0.8350 after UK GDP release

The British Pound failed to gain any fresh traction, with the EUR/GBP cross trading nearly unchanged from yesterday's close around 0.8350 region following the release of UK GDP print. 

Today's release of the revised UK GDP growth figures for second quarter of 2016 were in-line with market expectations and matched initial estimate of 0.6% q-o-q growth. The release provided little impetus but the British Pound managed to maintain its relative outperformance against the European counterpart.

On Thursday, the cross stalled three consecutive days of losing streak and managed to recover some of its steep losses despite of the disappointing release of German IFO Business Climate index. 

Nevertheless, the cross is still headed for its first weekly decline following four weeks of consecutive gains to a multi-year high level touched in the previous week. 

Technical levels to watch

From current levels, 0.8500 psychological mark remains immediate strong support to defend, which if broken is likely to accelerate the slide and force the pair to test sub-0.8400 level, nearing 50-day SMA. On the flip side, 0.8565-70 area seems to act as immediate resistance, above which the recovery momentum is likely to get extended towards 0.8600 round figure mark.