EUR/GBP corrects back closer to 0.89 handle

After yesterday's sharp pull-back from the 0.8900 handle, the EUR/GBP cross came under some fresh selling pressure on Thursday and is currently placed at session lows near the 0.8920 region.

The cross on Wednesday recovered from lows after the preliminary UK GDP print for the second quarter of 2017 dampened prospects of any immediate BOE monetary policy action. The recovery move, however, turned out to be short-lived and the cross met with some fresh supply near 0.8950-60 hurdle. 

Today's downtick lacked any fundamental driver and could be solely attributed to some profit-taking slide around the EUR/USD major. Against the backdrop of recent ECB 'taper tantrum', which might continue to underpin the shared currency, the current pull-back would still be categorized as a corrective in nature and might be looked upon as a buying opportunity. 

   •  EUR/USD upside lost momentum near 1.1780

Hence, it would be prudent to wait for a strong follow through selling pressure before confirming that the cross might have topped out around the key 0.90 psychological mark. 

Technical levels to watch

Bears would be eyeing for a sustained break through the 0.8900 handle, below which the corrective slide could get extended towards its next support near 0.8865 level. On the upside, 0.8950-60 region remains immediate strong resistance, which if conquered could assist the cross to surpass 0.8975 hurdle and make a fresh attempt towards conquering the 0.9000.