EUR/GBP flirting with lows, around 0.8900 handle ahead of Draghi
| • On offers for the third consecutive session.
• Retreats around 115-pips from Wednesday’s 4-week tops.
The EUR/GBP cross extended its corrective slide and has now moved on the brink of breaking back below the 0.8900 handle.
For the third time since early Oct., the cross failed to sustain its up-move beyond the 0.9000 psychological mark and has now retreated around 115-pips from four-week tops touched in the aftermath of mixed UK employment data on Wednesday.
The latest UK monthly retail sales data, which bettered expectations by growing 0.3% in October versus the forecast of 0.1%, coupled with rumours that the UK PM Theresa May was preparing to raise the Brexit divorce bill offer, prompted some additional profit-taking slide on Thursday.
• GBP: Bulls retain faith in Brexit progress as talks enter ‘squeaky bum time’ - ING
The British Pound continued with its relative outperformance against the shared currency and has been one of the key factors weighing on the cross, for the third consecutive session on Friday.
In absence of any major market moving economic releases, either from the UK or Euro-zone, traders on Friday will take cues from the ECB President Mario Draghi and Deutsche Bundesbank President Jens Weidmann's scheduled speeches at the Frankfurt European Banking Congress.
• EUR: Policy developments set to drive volatility - ANZ
Technical levels to watch
A decisive break below the 0.8900 handle is likely to aggravate the selling pressure and drag the cross back towards 0.8855 horizontal support. On the upside, any recovery attempt might now confront fresh supply near 0.8925 level, which is followed by a strong hurdle near the 0.8955-60 region.
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