EUR/GBP hits fresh two-week low

After Thursday's ECB-led volatile move, the EUR/GBP cross resumed with its near-term corrective slide and dipped below 0.8900 handle to a fresh two week low during early European session. 

The pair on Thursday jumped back above 0.9000 psychological mark, recovering all of its lost ground since the beginning of this week after ECB President Mario Draghi said that the central bank's governing council did not discuss extending its assets buying program beyond the original deadline March 2017. The cross, however, reversed quickly as Draghi further added there wasn't any discussions on tapering the QE program either, dashing hopes that the central bank might abruptly end its bond purchase program. 

With a relatively thin economic docket, featuring the only release of Public Sector Net Borrowing from the UK, price action surrounding the shared currency would remain the sole driver of the pair's move on Friday as markets digest uncertainty over the ECB's future monetary policy stance.

Technical levels to watch

On a sustained weakness below 0.8900 handle, the cross seems vulnerable to drop towards 0.8850 horizontal support before extending its slide further towards sub-0.8800 support near 0.8785-80 region. Meanwhile on the upside, 0.8925 level now becomes immediate resistance, which if cleared seems to lift the cross towards 0.8970-75 horizontal resistance before the pair makes a fresh attempt to reclaim 0.9000 psychological mark.