EUR/GBP slides back closer to Friday’s swing lows, around 0.8765-60 region
• Remains capped below 0.88 handle amid a goodish pickup in GBP demand.
• Holiday thinned liquidity conditions might help limit further downside.
After an initial uptick to 0.8785 level, the EUR/GBP cross came under some selling pressure and retreated back to Friday's low.
The cross continued with its struggled to build on its recent recovery move from near 9-month lows, set on March 22 and remained capped below last week's swing highs to the 0.8800 neighborhood.
The cross has now snapped two-consecutive days of winning streak and in absence of any fresh fundamental trigger, the retracement slide at the start of a new week could be solely attributed to some goodish pickup in the GBP demand.
With the European markets closed in observance of Easter Monday, holiday-thinned liquidity conditions might help limit further downside. It would now be interesting to see if the cross is able to catch any fresh bids at lower levels or the downfall marks the end of its recent recovery move from the lowest level since June 2017.
Technical levels to watch
Immediate support is pegged near 0.8760 level, below which the cross seems to head back towards testing 0.8725-20 intermediate support before eventually dropping back to the 0.87 handle.
On the flip side, any meaningful upside might continue to confront some fresh supply near the 0.8800 handle, which if cleared might trigger a short-covering bounce towards 100-day SMA hurdle near the 0.8835-40 region.
Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
