EUR/GBP resumes corrective move, back below 0.8350

Despite of Friday's bounce nearly 150-pips from session lows, the EUR/GBP cross failed to sustain its recovery strength above 0.8400 handle and now seems to resume with its near-term corrective move to currently trade 0.8330-35 band.

The cross continues to be driven by BOE's inaction that led to a relief rally for the British Pound. Meanwhile, the shared currency continues to underperform ahead of this week's ECB monetary policy meeting. Dovish signals from ECB would continue to weigh on the common currency and drive the EUR/GBP cross lower in the near-term.

On the economic data front, traders will confront the release of the latest print of the UK CPI on Tuesday, ahead of Wednesday's jobs report and monthly retail sales data on Thursday. This week's economic releases / events would now act as the next big trigger and assist investors to determine definitive near-term direction for the EUR/GBP cross. 

Technical levels to watch

On the immediate downside, 0.8300 round figure mark seems to act as immediate support, which is followed by last week's swing lows support near 0.8250 region. A follow through selling pressure below 0.8250 support now seems to open room for continuation of the pair's near-term corrective move, even below 0.8200 round figure mark, towards its next major support near 0.8100 handle, marking 50% Fibonacci retracement level of Brexit-led sharp up-swing.

Meanwhile on the upside,  a sustained move above 0.8400 level is likely to boost the pair back towards 0.8440-50 strong horizontal resistance, which if conquered would confirm resumption of the near-term strong momentum and assist the pair back toward recent closing highs resistance near 0.8580 region.