EUR/GBP struggling for a firm direction at 0.8625

On the last trading day of the week, the EUR/GBP cross was confined in a narrow band and is now trading near the lower end of the trading range around 0.8625-20 band. 

A broad based greenback recovery is weighing on both the shared currency and the British Pound, failing to provide any fresh impetus to the EUR/GBP cross. 

The incoming UK economic data provided little evidence of an immediate economic implication of the historic Brexit referendum and lifted the British Pound sharply higher against its European counterpart. The cross eventually corrected over 100-pips from a fresh 3-year high touched during the early part of the week and is now headed for its first weekly decline in the previous four. 

Technical levels to watch

Bulls will be disheartened if the cross decisively breaks below 0.8600 mark, below which the corrective move is likely to get extended towards 20-day SMA support near 0.8525-20 region. A follow through selling pressure should drag the pair towards 0.8480-75 horizontal support.

Meanwhile on the upside, 0.8640 level now seems to act as immediate resistance above which the cross to surpass 0.8675 resistance and make a fresh attempt to move back above 0.8700 handle.