EUR/GBP flirting with lows, below mid-0.8900s post UK PMI

The EUR/GBP cross extended its near-term range-bound price action and was seen flirting with the lower end of its weekly trading range following the release of UK services PMI.

The cross maintained its bearish bias, around session lows near the 0.8940 region, after the UK services sector registered a better-than-expected growth, with the services PMI rising to 53.8 for July from previous month’s reading of 53.4. 

Despite of the initial reaction of 10-15 pips, the cross lacked any strong follow through weakness as investors refrained from placing aggressive bets ahead of the very important BoE monetary policy decision, due to be announced later today. 

Moreover, the incoming solid Euro-zone macro data remained supportive of the prevalent bullish sentiment surrounding the shared currency and further collaborated towards limiting any immediate sharp downslide for the cross.

Technical levels to watch

A follow through weakness might continue to take support near 0.8920 region, which is closely followed by a strong support near the 0.8900 handle, below which the cross could slide towards its next support near the 0.8860-55 region. 

On the flip side, sustained momentum above the 0.8960-65 region now seems to assist the cross to make a fresh attempt towards conquering the key 0.90 psychological mark before eventually darting towards its next hurdle near 0.9030 level.