EUR/GBP slides to fresh weekly low, eyeing 0.86 mark ahead of German CPI

The EUR/GBP cross extended previous session's sharp reversal from two-week highs and has now dropped back to the lower end of weekly trading range support.

Persistent weakness around the shared currency, in wake of market talks that ECB has no intention to withdraw its massive stimulus program, has been a key driver of the pair's bearish slide for the second consecutive session. The selling pressure remained unabated after ECB’s Nowotny reaffirmed that there was no reason to depart from ECB strategy for 2017.

Agains the backdrop, market participants now keenly await the release of prelim German CPI print for the month of March, which if falls more than expected would continue to weigh on the shared currency. 

Meanwhile, a consolidative price-action surrounding the GBP/USD major, following Brexit news related volatile moves over the past couple of day, did little to hinder the pair's slide back to weekly lows support near the 0.8620-15 region. 

Technical levels to watch

From current levels, 0.8610 level is likely to act as immediate support, below which the pair is likely to accelerate the slide towards 0.8580 horizontal support ahead of 0.8550-45 support area.

On the upside, 0.8645 level now becomes immediate barrier, which if conquered might trigger a short-covering rally towards 0.8680 level, en-route the 0.8700 handle and .8730-35 strong resistance (yesterday's swing high).