EUR/GBP extends Friday’s rejection slide from 0.90 neighborhood
|The EUR/GBP cross extended Friday's rejection slide from the key 0.90 psychological mark and remained heavily offered through early European session.
A mildly softer tone around the shared currency seems to have prompted traders to take some profits off the table, especially after last week's strong upsurge of nearly 250-pips from mid-0.8700s and today's slightly weaker-than-expected Euro-zone PMI prints.
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Meanwhile, the market seems to have shrugged off the latest downgrade of the UK economic growth forecasts by the IMF, amid persistent worries over the impending Brexit deal, with some GBP buying interest further collaborating to the pair's pull-back from over 8-month highs touched on Friday.
Technical levels to watch
A follow through selling pressure below the 0.8935-30 zone could extend the corrective slide even below the 0.8900 handle towards its next support near 0.8865 level. On the upside, 0.8975 level now seems to act as immediate resistance, above which the cross is likely to make a fresh attempt towards conquering the 0.9000 handle and head towards its next hurdle near 0.9030 level.
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