EUR/GBP holding gains to session high despite of strong UK GDP print

Despite of stronger-than-expected UK GDP print, the EUR/GBP cross held on to it tepid gains but remained below 0.8400 handle to currently trade around session high level near 0.8390 region. 

According to the preliminary GDP release, UK economy posted a growth of 0.6% during second quarter of 2016. The reading was better-than 0.5% expected and 0.4% growth recorded in the previous quarter. 

The British Pound failed to benefit from stronger GDP print as market remained skeptic that the UK economy would be able to replicate the performance after last month's historic Brexit referendum. 

Next in focus would be FOMC monetary policy decision, which could have diverging effect on both the majors and eventually drive the EUR/GBP cross. 

Trade July 27 Federal Reserve interest rate decision - Live Coverage

Technical levels to watch

On a sustained bullish momentum above 0.8425 strong resistance, the pair seems to immediate dart towards 0.8470 intermediate resistance (July 14 high) before heading towards reclaiming 0.8500 psychological mark. On the flip side, bulls would be disheartened if the pair breaks below 20-day SMA support near 0.8325 region, below which it could be vulnerable to extend its slide, even below recent swing lows support near 0.8250 region and 0.8200 round figure mark, towards its next major support near 50-day SMA support around 0.8150 region.