EUR/GBP sits at three-week tops ahead of ECB minutes

After yesterday's volatile session, the EUR/GBP cross finally managed to clear the 0.8880-90 supply zone and surged to three-week tops on Thursday.

The market already seems to have digested Wednesday upbeat UK services PMI print and hence, a fresh wave of selling bias around the British Pound helped the cross to extend its recent strong recovery move from near 2-1/2 month lows touched last week. 

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Persistent Brexit worries and political uncertainty kept the GBP bulls on the back-foot and helped the cross to break through a key hurdle, taking along some big stops at the 0.8900 handle.

Currently placed around 0.8925-30 area, traders now seem to consolidate their positions ahead of the key ECB monetary policy meeting minutes, which would be looked upon for view over the recent Euro appreciation and clues over the central bank's tapering plans. 

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Technical levels to watch

A follow through buying interest has the potential to continue lifting the cross towards 0.8960 level ahead of the key 0.9000 psychological mark. On the flip side, any retracement from higher level might now find immediate support near the 0.8900 handle, which if broken is likely to accelerate the slide towards 0.8870 level en-route of 0.8840 level.