EUR/GBP faded UK PMI-led spike beyond 0.88 mark, drops to fresh session lows

The EUR/GBP cross faded disappointing UK services PMI-led bullish spike beyond the 0.8800 handle and has now retreated nearly 50-pips from session tops.

Currently trading around 0.8770-65 region, testing session lows, the cross shrugged off an upward revision of the Euro-zone services PMI prints and was being weighed down by ECB board member Benoit Coeure comments that the central bank has not discussed changing its monetary policy stance. 

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Meanwhile, market seems to have digested today's disappointing UK services PMI prints, which added to this week's UK data disappointment (manufacturing and construction PMIs) but did little to attract any fresh selling interest around the British Pound, with an offered bias around the shared currency acting as an exclusive driver of the pair's rejection move from the 0.8800 handle.  

Technical levels to watch

A follow through weakness below weekly lows support near 0.8760-55 region could get extended towards 0.8730 level, below which the cross is likely to head towards testing the 0.8700 handle.

On the upside, the 0.8800 handle remains an immediate strong hurdle, which if conquered might trigger a short-covering rally back towards mid-0.8800s resistance en-route 0.8880 level (yearly tops).