EUR/GBP resumes corrective move, drops to session low at 0.8625

On the first trading day of a new week, the EUR/GBP cross traded with negative bias and has now erased over 50% of its Friday's up-move to currently trade at session low around 0.8625 level. 

Last week the pair touched a fresh 3-year high during the early part of the week but failed to build on to its momentum and corrected over 100-pips before staging a recovery on Friday. The recovery, however, turned out to be short-lived and the cross now seems to have resumed its near-term corrective move.

News / developments surrounding the possibilities that UK might invoke Article 50 earlier-than-expected could help traders to derive some short-term momentum play. Meanwhile, a broad based greenback recovery might continue to weigh on both the shared currency and the British Pound, keeping market participants busy on Monday.

Technical levels to watch

Bulls are likely to make an attempt to hold 0.8600 round figure mark support, below which the corrective move is likely to get extended towards 20-day SMA support near 0.8525-20 region. A follow through selling pressure should drag the pair towards 0.8480-75 horizontal support.

On the flip side, 0.8640-50 zone now seems to act as immediate resistance, above which the cross seems to surpass 0.8675 resistance and make a fresh attempt to move back above 0.8700 handle.