EUR/GBP snaps six days of winning streak, Draghi eyed

The EUR/GBP cross snapped six consecutive days of winning streak and witnessed a profit taking slide from fresh multi-week high level of 0.8787.

Currently trading around 0.8740-35 band, a goodish recovery move around the GBP/USD major has been a key factor for the pair's weakness on the first trading day of the week. Moreover, a lack of follow through buying interest around the common currency further collaborated to the pair's profit-taking slide. 

Ahead of the scheduled debate on the Brexit bill, where MPs are expected to reject the changes made in the House of Lords, and a key speech by the ECB President Mario Draghi, traders preferred to take some profits off the table following the pair's relentless rally of nearly 290-pips over the past couple of weeks. 

Against the backdrop of Bloomberg news report on Friday that the European Central Bank (ECB) had discussed whether it could raise interest rates before ending its monthly quantitative easing program, Draghi's speech would now be scrutinized closely and could act as next catalyst for the pair's near-term trajectory.

BoE to stay on hold: Risks to EUR/GBP skewed to the upside – Danske Bank

Technical levels to watch

Immediate support is pegged near 0.8720 level, below which the cross is is likely to break through the 0.8700 handle and accelerate the slide towards 0.86665-60 support area. On the upside, 0.8770 level now seems to have emerged as immediate resistance, which if cleared now seems to pave way for continuation of the pair's upward trajectory, even beyond 0.8800 round figure mark, towards testing its next hurdle near 0.8825-30 area.