EUR/GBP rises to mid-0.8500s ahead of UK data and BoE's Carney

The EUR/GBP cross gained some fresh traction and traded with mild positive bias on Friday, albeit has struggled to build on early gains further beyond mid-0.8500s.

Thursday's dovish remarks by the ECB President Mario Draghi failed to assist the cross to extend its sharp recovery move from the vicinity of 0.85 handle. The cross subsequently reversed all of its daily gains and finally settled in negative territory for the second consecutive session. 

Also on Friday, subdued price action around both the majors (EUR/USD and GBP/USD) did little to provide any fresh impetus. However, a cautious mood, ahead of today's UK economic docket, has led to a relative underperformance of the British Pound against its European counterpart and has helped the cross to hold with minor gains. 

Today's UK macro releases includes Halifax HPI, manufacturing and industrial production along side goods trade balance and construction output data. Apart from the economic releases, GBP trader will closely scrutinize comments from BOE Governor Mark Carney, where hints over monetary policy outlook might trigger a fresh bout of volatility around GBP crosses. 

UK: Downside risks to manufacturing output – TDS

Technical levels to watch

Bulls would be eyeing for a sustained momentum beyond 0.8570 immediate resistance, above which the cross is likely to extend the up-move towards 0.8595-0.8600 region (200-day SMA) before darting back towards mid-0.8600s horizontal hurdle. Meanwhile, weakness back below 0.8530 level is likely to accelerate the slide back towards the 0.85 handle, en-route 0.8480-75 support area.