EUR/GBP defends 0.88 handle ahead of UK retail sales release

• EUR/GBP bulls defend 0.88 levels.
• Eyes UK retail sales.

EUR/GBP is mildly bid around 0.8815 levels in early Europe ahead of the UK data, which could show retail sales fell 0.6 percent month-on-month in December.

The currency pair closed below 200-day MA on Wednesday and fell to 0.880 yesterday; the lowest level since Dec. 19.

The cross could drop below 0.88 levels if the UK data due at 09:30 GMT shows consumption, as represented by the retail sales, beats market expectations. Also, investors fear President Draghi could tame the hawks at the ECB next week. Hence, the upside in the EUR/GBP could be capped around the 200-day MA hurdle of 0.8834.

EUR/GBP Technical Levels

A close above 0.8834 (200-day MA) would open doors for 0.8883 (100-day MA) and 0.89 (zero levels). On the other hand, a break below 0.88 (zero levels) could yield a sell-off to 0.8760 (Dec. 15 low) and 0.8756 (Dec. 4 low).