EUR/GBP refreshes session low post ECB, Draghi presser awaited

The EUR/GBP cross faded a knee-jerk spike to 0.8700 handle and retreated back to refresh session lows near 0.8670-65 region in post-ECB price-action.

The cross spiked around 15-20 pips after the European Central Bank announced its latest monetary policy decision. As was universally expected, the central bank left its key benchmark interest rates unchanged and also kept its asset purchase program stable at a monthly pace of €60 billion. The central bank reiterated that it stands ready to increase the size and duration of QE, if needed. 

However, the fact that the central bank omitted guidance on rate-cut seems to have disappointment market participants looking for clues on some sort of policy normalization in the near-term and attracted some fresh selling pressure around the shared currency.

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The selling pressure seems to have abated a bid, at least for the time being, as investors now look forward to the post-meeting pressure conference, where comments from the ECB President Mario Draghi would now help determine the next leg of directional move for the common currency. 

   •  Mario Draghi's speech Live Coverage - ECB Press Conference Today

Technical levels to watch

On a follow through weakness below 0.8650 level, the cross is likely to accelerate the slide towards 0.8630 horizontal support en-route the 0.8600 handle. Meanwhile on the upside, the 0.8700 handle now seems to have emerged as immediate strong hurdle, which if cleared might trigger a short-covering bounce towards 0.8770 area, with some intermediate resistance near 0.8735 level.