EUR/GBP hits 2-week lows but finds some support near 0.8700 handle

   •  On offers for the fifth session in the previous six. 
   •  Today’s downfall lacked any fundamental catalyst.
   •  Technically seems vulnerable to slide back towards multi-month lows.

The EUR/GBP cross held on to its weaker tone through the mid-European session and dropped to over 2-week lows in the past hour, albeit quickly recovered few pips thereafter.

The cross extended last week's rejection slide from the 0.8800 neighborhood and remained under some selling pressure for the fifth trading session in the previous six. The British Pound's relative outperformance against its European counterpart lacked any obvious catalyst and today's downfall could be solely attributed to some renewed technical selling.

The cross, however, seems to have found some support near the 0.8700 handle and has now managed to bounce back few pips, albeit continued trading with a mild negative bias amid absent fundamental triggers, in terms of any major market moving economic releases. 

Meanwhile, the price action over the past two-weeks now seems to suggest that the pair's recent recovery move from the 0.8670-65 region, multi-month lows touched on March 22, was nothing but corrective in nature within a broader downtrend that started on March 7. Hence, a follow-through weakness, leading to a fall back towards multi-month lows touched in March, now looks a distinct possibility. 

Technical levels to watch

Any further recovery move is likely to confront resistance near the 0.8720 region, above which a bout of short-covering could lift the cross towards mid-0.8700s. On the flip side, a decisive break below the 0.8700 handle might confirm a fresh bearish break and accelerate the fall back towards the 0.8670-65 region.