EUR/GBP muted around weekly lows after status-quo ECB

The EUR/GBP cross maintained its offered tone near weekly lows, around 0.8445-40 band, and had a muted reaction to the ECB decision announcement.

At its latest monetary policy meeting, the ECB's governing council decided to leave the current monetary policy stance unchanged, with all the key benchmark rates - main refinancing rate, deposit rate, and marginal lending rate held steady at 0.0%, 0.4% and 0.25% respectively.

The decision was on expected line and hence, did little to provide any fresh impetus / extend any immediate support to the shared currency. 

Market participants now look forward to the subsequent ECB press conference, where comments from the ECB President should drive substantial volatility across Euro crosses.

Technical levels to watch

A follow through bearish momentum could get extended towards 0.8415-10 intermediate support before the cross eventually breaks below the 0.8400 handle and head towards testing its next support near 0.8380-75 region.

On the upside, any recovery beyond 0.8475-80 zone is likely to confront strong hurdle at the key 0.8500 psychological mark, above which a bout of short-covering could lift the cross beyond two-week highs resistance near 0.8530 level towards its next important barrier near 0.8570 level.