EUR/GBP confined in a narrow trading band around 0.8900 handle
|The EUR/GBP cross struggled for a firm direction and has been confined within a narrow trading range around 0.8900 handle.
After failing to benefit from Monday's release of stronger-than-expected Euro-zone PMI prints, the cross once again ignored Tuesday's upbeat release of German IFO business climate index. Moreover, a range-bound price action around the EUR/USD and the GBP/USD major has failed to provide any impetus and the cross remained stuck within 20-pips narrow trading range.
Later during US trading session, speeches from two of the most influential central banks head, BoE Governor Mark Carney and ECB President Mario Draghi, will grab the spotlight and would be the most important market moving events on Tuesday. Updates on the economic consequences of the historic Brexit Vote and possible clues over ECB's future monetary policy stance might trigger a fresh bout of volatility in the FX market and eventually provide fresh directional impetus for the EUR/GBP cross.
Technical levels to watch
Bulls will be disheartened if the cross fails to hold 0.8880 immediate horizontal support below which the corrective slide is likely to get extended immediately towards 0.8845 horizontal support before the cross eventually drops to its next major support near 0.8800 handle.
On the upside, strong bullish recovery above 0.8925 immediate hurdle is likely to trigger a short-covering rally towards 0.8970 area en-route 0.9000 psychological mark resistance.
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