EUR/GBP tumbles to lows near mid-0.8500s after impressive UK retail sales

The EUR/GBP cross extended its corrective slide and tumbled to fresh session low following the release of UK retail sales data. 

Spot ran through some fresh offers and reversed all of Wednesday’s gains to 7-week tops after stellar UK monthly retail sales figures. According to the data released just a while ago, the total value of sales at the retail level recorded a strong m-o-m growth of 2.3% during April, taking the yearly growth rate to 4.0%. The readings surpassed even the most optimistic estimates and boosted the British Pound across the board, dragging the cross to mid-0.8500s. 

Meanwhile, a corrective slide in the EUR/USD major, primarily led by some profit-taking following its recent up-surge to six month highs, was also seen collaborating to the mildly offered tone surrounding the EUR/GBP cross. 

Later during the day, minutes from the ECB's April meeting would be looked upon for some fresh impetus, ahead of a scheduled speech by the ECB President Mario Draghi.

Technical levels to watch

Immediate support is pegged at 0.8560 level (yesterday's low), below which the pair is likely to extend the corrective slide towards 0.8530 horizontal support en-route the key 0.8500 psychological mark. Meanwhile on the upside, the 0.8600 handle now becomes immediate strong hurdle, which if conquered could accelerate the up-move further towards 0.8650 intermediate resistance ahead of 0.8675-80 strong hurdle.