EUR/GBP heading for a fresh break-out above 0.8450

The shared currency maintained its bid tone, with the EUR/GBP cross now extending its recovery from early minor losses and is now flirting with Thursday's two-week high level.

A fresh bout of buying interest seems to have emerged around the common currency after the release of upbeat EU CPI and GDP data. Adding to this, reemergence of selling pressure surrounding the British Pound provided the required momentum for the EUR/GBP cross.

On Thursday, the cross finally managed to break through its near-term trading range and jumped to 0.8450. A follow through buying interest above 0.8450 region will confirm the break-out and pave way for additional near-term upward trajectory.

Technical levels to watch

Momentum above two-week high resistance near 0.8450 level is likely to boost the cross immediately towards 0.8500 psychological mark before extending its bullish traction further towards recent closing highs resistance near 0.8580 region.

On the flip side, 0.8400 handle now become immediate support to defend. Failure to hold this immediate support, and a subsequent break below 0.8365-60 horizontal support, now seems to turn the pair vulnerable to further downside in the near-term.