EUR/GBP tops at 0.8600 handle, retraces back to 0.8550

After making a fresh attempt to move back above 0.8600 handle, the EUR/GBP cross is seen retracing from higher levels to currently trade around mid-0.8500s. 

Adding to the Brexit-led appreciating move, expectations of further monetary easing by the Bank of England lifted the pair to its highest level since late August 2013 on Wednesday. The pair, however, was seen struggling to sustain its move above 0.8600 handle and forced traders to take some profit of the table that is leading to a corrective pull-back on Thursday. 

Going forward, next week's BOE monetary policy meeting will remain the key fundamental trigger for the pair's next leg of move. In the meantime, day-term traders will take cues from today's release of UK manufacturing and industrial production data for the month of May, which would be followed by the release of ECB Monetary Policy Meeting Accounts, later during European trading session.

Technical levels to watch

From current levels, the pair seems to find immediate support near 0.8510-0.8500 round figure mark. Below 0.8500 handle, the corrective move is likely to get extended, which seems to drag the pair towards its next support near 0.8400 region. On the flip side, 0.8600 level remains immediate resistance to conquer and a sustained strength above this multi-year highs resistance now seems to pave way for continuation of the pair's appreciating move in the near-term.