EUR/GBP building on to its strength above 0.8600 handle

Following a consolidation phase during the major part of current trading week, the EUR/GBP cross finally seems to have broken out and is now building on to its strength above 0.8600 handle.

Currently trading near session high level around 0.8615 region, the cross gained upside momentum amid renewed selling pressure around the British Pound after UK foreign minister Boris Johnson, speaking to the BBC and Sky News, said that Article 50, to begin the Brexit process, would be triggered in early 2017.

Meanwhile, a mixed reading from the preliminary release of Euro-zone PMI prints for the month of September failed to attract any fresh buying interest around the shared currency, restricting the pair within weekly trading range. 

Technical levels to watch

Immediate upside resistance is pegged at 0.8630 (weekly high), which if cleared decisively should lift the pair immediately towards 0.8660 horizontal resistance. On the downside, slide back below 0.8600 handle, and a subsequent weakness below 0.8585 level, would reaffirm near-term range-bound price action and take the pair back to the lower end of the range support near 0.8560 level.