EUR/GBP drifts back closer to 2-month lows

The EUR/GBP cross stalled its post-BoE tepid rebound and drifted into negative territory for the sixth consecutive session. 

The cross faced rejection around the 0.8900 handle and has now drifted back to near two-month lows touched in the aftermath of hawkish BoE minutes, which showed policymakers' broad consensus that some withdrawal of stimulus would be appropriate in coming months. 

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The British Pound built on BoE-led overnight strong gains and has been one of the key factors weighing on the cross through early European session on Friday.

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Investors would now take clues from a scheduled speech by External BOE MPC Member Gertjan Vlieghe and BOE's Quarterly Bulletin, while the release of Euro-zone trade balance data might also provide some short-term trading impetus.

Technical levels to watch

Immediate support is pegged near 0.8850-45 area, below which the slide could get extended towards the 0.8800 handle with some intermediate support near 0.8825 level. 

On the upside, any recovery attempts might continue to confront some fresh supply near the 0.8900 handle, which if cleared might trigger a short-covering bounce towards 0.8935 level en-route 0.8970-75 strong barrier.

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