EUR/GBP refreshes weekly lows ahead of ECB

The EUR/GBP cross extended previous session's reversal move from two-week highs and dropped to refresh weekly low.

Spot remained under some selling pressure for the second consecutive day as traders seemed inclined to lock-in some profits, especially after repeated failed attempts to sustain its move beyond the key 0.85 psychological mark.

Adding to this, nervousness ahead of the next big event risk - ECB monetary policy decision, might have also prompted some position readjustment and further collaborated to pair's slide below Monday's weekly lows.

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Meanwhile, positive sentiment surrounding the British Pound, with the GBP/USD major now placed near yearly tops around the 1.2900 handle, further supported the heavily offered tone surrounding the cross. 

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Investors' focus on Thursday will remain glued to the ECB policy announcement, which has the potential to make or break the shared currency and trigger a fresh bout of volatility across Euro crosses. On the economic data front, the preliminary release of German CPI print for April would be looked upon to grab some short-term trading opportunities. 

Technical levels to watch

A follow through selling pressure has the potential to continue dragging the pair further towards its next support near 0.8415-10 zone ahead of 0.8380 support. On the flip side, any recovery attempt might now confront immediate resistance near 0.8475-80 region, above which the cross is likely to surpass the 0.8500 handle and aim back towards two-week highs resistance near 0.8530 level.