EUR/GBP hits fresh 1-month highs near 0.8600

The euro rose further gains the pound after UK and Eurozone data and peaked at 0.8594, the highest level since March 30. It pulled back modestly afterward and it is trading at 0.8580/85, consolidating a gain of more than 50 pips, the best day since late April. 

EUR/GBP gained momentum surprisingly after UK inflation data that showed higher-than-expected numbers. The CPI in April rose 2.7% yearly basis, above the 2.6% expected (previous 2.3%), the PPI was also higher than expected, with factory output prices up by 3.6% yearly basis above the 3.4% expected. 

Also, Eurozone growth numbers and the ZEW survey helped the euro. GDP data showed that the economy expanded at a 0.5% q/q rate. 

German May ZEW economic sentiment: A tad better, but misses expectations

Eurozone Q1 flash GDP steadies at 0.5% q/q

EUR/GBP technical levels

If the euro consolidates around current levels it would confirm the break of important technical levels, including rising back above the 100-day moving average. 

To the upside immediate resistance is seen at 0.8600 (psychological), 0.8620 (Mar 28 low) and 0.8660 (Mar 30 high). On the flop side, support could lie at 0.8550 (Feb 28 high), 0.8515 (May 15 high) and 0.8495 (daily low).