EUR/GBP quickly reverses UK PMI-led slide, up small near 0.8465

The EUR/GBP cross failed to build on early up-move to daily peak near 0.8485 region and dropped to refresh session lows following the UK PMI print. 

The cross, however, has managed to bounce off few pips from lows and is currently trading with mild positive bias for the second consecutive session, around the 0.8465-70 region. The cross ran through some fresh offers after the UK manufacturing PMI surpassed expectations and came-in at 57.3 for April, up from last month's 54.2. 

Upbeat PMI reading provided some immediate respite for the British Pound, albeit renewed worries of a possible 'hard Brexit' scenario capped further gains and helped the cross to quickly reverse a knee-jerk reaction slide to session lows. 

Meanwhile, a positive tone surrounding the EUR/USD major, further reinforced by mostly in-line/slightly better-than-expected release of the final Euro-zone PMI prints, also collaborated towards limiting any further downslide for the cross.

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With economic data out of the way, any fresh news/development surrounding the Brexit negotiations would continue to be a key driver of the pair's near-term momentum.

Technical levels to watch

Bulls would be eyeing for a follow through buying interest beyond 0.8485 level, above which the cross is likely to aim towards reclaiming the key 0.85 psychological mark ahead of its next key hurdle near 0.8530 region.

On the downside, 0.8450-45 area now becomes immediate support to defend, which if broken is likely to accelerate the slide towards 0.8425-20 horizontal support ahead of the 0.8400 handle.