EUR/GBP retreats from session peak after UK data

The EUR/GBP cross trimmed some of Friday's strong recovery gains, albeit has managed to hold on to its move back above 0.8500 psychological mark, after UK economic releases. 

Currently trading around 0.8505-10 region, the cross failed to gain further traction after the revised UK GDP print matched original estimates and came-in to show a growth of 0.5% during third quarter of 2016. The British Pound, however, attracted some buying interest following a surprisingly stronger capital investments data. The preliminary release of quarterly Business Investment report from the UK showed capital investments recorded an unexpected growth of 0.9% in the previous quarter as compared of an expected decline of 0.2%. 

Meanwhile, a strong bid tone around the shared currency has been supportive of the pair's recovery on Friday and thus, restricted any sharp reversal despite of upbeat UK economic data.

Technical levels to watch

Weakness back below 0.8500 mark could get extended towards 0.8470 (session low) support, which if broken is likely to accelerate the slide further below 0.8460 (yesterday's multi-month low) towards testing its next support near 0.8440 region. On the upside, 0.8535 (session peak) now becomes immediate resistance, which if cleared is likely to boost the cross further towards 0.8560 resistance en-route 0.8595 (Wednesday's high), nearing 0.8600 handle.

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