EUR/GBP extends dismal UK data-led gains, inching closer to yearly tops

The British Pound remained heavily offered across the board, lifting the EUR/GBP cross to recent daily closing highs resistance near mid-0.8800s.

The cross built on previous session's strong up-move led by perceived hawkish ECB minutes and gained further traction following today's weaker release of UK industrial output and trade data. 

A week of negative UK economic data raised questions over the country's economic outlook and now seems to favor a dovish BoE stance, which is eventually taking a toll on the British Pound.

The cross has now moved within striking distance of nearly 10-month highs touched week but additional gains were capped by a mildly softer tone surrounding the EUR/USD major. 

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Hence, traders are likely to wait for a follow-through buying interest beyond the 0.8880 level, the yearly tops, before positioning for any additional near-term appreciating move for the cross.

Technical levels to watch

A follow-through buying interest beyond the mentioned yearly tops resistance, the cross is likely to surpass the 0.8900 handle and aim towards testing 0.8930-35 horizontal hurdle. On the downside, any pull-back from higher levels now seems to find support near 0.8815 level ahead of the 0.8800 handle. Any subsequent weakness below the 0.8800 mark now seems to be limited by a strong horizontal support near 0.8780 area.