EUR/GBP at daily tops near 0.8900 as ECB presser gets underway

The EUR/GBP cross once again met with some fresh supply near the 0.8900 handle and retreated around 30-pips post-ECB announcement. As the ECB presser got underway, the cross quickly spiked back to session tops, albeit remained marginally below the 0.8900 handle. 

The shared currency weakened across the board after the European Central Bank (ECB) left its benchmark interest rates unchanged and said that QE tapering won't start until December. Meanwhile, the governing council reiterated its readiness to increase the bond purchase program in terms of size and/or duration, if needed, and foresee rates at the current level for extended period of time. Market players seemed disappointed as the ECB delivered little new to encourage bulls and an apparent shift from recent hawkish rhetoric to a dovish stance. 

   •  Draghi Speech: Monetary policy has continued to secure very favourable financing conditions needed

   •  Draghi Speech: Headline inflation dampened by energy prices

The cross, however, has managed to hold in positive territory for the third trading session in the previous four amid heavily offered tone surrounding the British Pound. Traders shrugged off today's upbeat UK retail sales data, while uncertainty surrounding the ongoing Brexit negotiations once again starting to take a toll on the Sterling. 

Technical levels to watch

On a sustained move beyond the 0.8900 handle, the cross is likely to aim towards testing recent daily closing highs resistance near 0.8925 level before eventually darting towards yearly tops resistance near mid-0.8900s.

Alternatively, sustained weakness below 0.8860 level could drag the cross back towards session lows support near 0.8835-30 region en-route the 0.8800 handle.