EUR/GBP slips into negative territory, refreshes session low post UK PMI

The EUR/GBP cross extended its retracement from 2-1/2 month tops and drifted into negative territory to refresh session lows following the release of UK manufacturing PMI.

Currently trading around 0.8720 region, spot ran through some fresh offers after data released from the UK showed manufacturing activity expanded at a slightly faster-than-expected pace during the month of May. The final Markit UK manufacturing PMI came-in at 56.7 as compared to 56.5 expected but was still weaker than 57.3 recorded in April, albeit did provide a minor boost to the British Pound. 

Meanwhile, a mildly offered tone surrounding the shared currency, with the EUR/USD major witnessing a profit-taking slide further collaborated to the pair's retracement from higher levels.

With today's slide, the cross now seems to have confirmed a strong supply zone near mid-0.8700s and hence, remains vulnerable to near-term corrective slide. 

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Technical levels to watch

A follow through selling pressure below 0.8700-0.8690 region could drag the cross back towards weekly lows support near 0.8655 level en-route its next horizontal support near 0.8630-25 region. 

On the upside, 0.8750 area remains immediate strong hurdle, which if conquered should lift the cross towards 0.8770-75 intermedaite resistance ahead of the 0.8800 handle.