EUR/GBP tumbles to lows, below 0.89 handle as the ECB presser gets underway

   •  Draghi: rates to remain at current level for an extended period of time.
   •  Still need for substantial degree of accommodation.

The EUR/GBP cross failed to gain any positive traction and held weaker near the lower end of daily trading range, below the 0.8900 handle. 

The shared currency lost some more ground after the ECB President Mario Draghi, in his opening statement at the post-meeting press conference, reiterated that rates are expected to remain at current levels for an extended period of time, well past the end of QE program, and said that the economy still need substantial degree of accommodation

Moreover, the latest development in Spain, where in the Catalan government appealed Supreme Court to suspend Article 155, was also seen weighing on the shared currency and further collaborated to the pair's slide back closer to weekly lows. 

   •  Catalan crisis: Puigdemont's appearance not suspended but delayed

Meanwhile, a modest retracement in the GBP/USD major, primarily led by renewed US Dollar strength, helped limit deeper losses, at least for the time being. 

Technical levels to watch

A follow through selling pressure has the potential to continue dragging the cross towards its next support near 0.8855 level ahead of 0.8815 area and the 0.8800 handle. 

On the upside, 0.8925-30 area is likely to act as immediate resistance, above which a bout of short-covering could lift the cross towards 0.8975 supply zone en-route the key 0.90 psychological mark.