EUR/GBP slips to session low near 0.8835

The EUR/GBP cross faded early European session spike to daily peaks and is now flirting with session lows in the 0.8835 region. 

The cross snapped two consecutive days of winning streak and eroded part of Friday's strong gains led by weaker UK industrial output and trade data. A modest profit-taking weakness surrounding the EUR/USD major seems to be the only factor weighing on the cross.

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Despite a mild pull-back, the cross has held above a multi-day trading range resistance break-out point now turned support near 0.8815 level. Hence, the retracement would still be seen as a buying opportunity against the backdrop of recent ECB “taper tantrum” and weaker sentiment surrounding the British Pound, led by last week's slew of UK data-disappointment and impending Brexit negotiations.

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In absence of any major market moving economic releases, the cross might extend its consolidative price action before extending its near-term upward trajectory back towards yearly tops resistance near 0.8880 area.

Technical levels to watch

Immediate support remains near 0.8815 level, below which the cross is likely to weaken below the 0.8800 handle and test 0.8775 horizontal support. On the upside, a strong follow through buying interest beyond 0.8850-0 region should lift the cross towards the 0.8880 hurdle before surpassing the 0.8900 handle towards testing its next major resistance near the 0.8930 region.