EUR/GBP dips ahead of UK PMI and ECB decision

After surging for two consecutive days, the EUR/GBP cross seems to consolidate and is currently trading with marginal loss near 0.7750 ahead of ECB decision.

The pair on Wednesday staged a second straight day of smart gains, extending its recovery from nearly 4-month low touched on Tuesday, and surged past 0.7700 handle with ease. Earlier on Thursday, the pair touched a two-week high level of 0.7775 before retracing a bit as traders now seems to await for further cues from Thursday's key event risk, ECB monetary policy decision.

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The EUR/GBP pair also seems to be benefited from the broad recovery in the British Pound heading into the release of UK construction PMI figure later during European session. Meanwhile, 'Brexit' worries might continue to keep the British Pound under pressure and restrict any immediate downside for the EUR/GBP cross.

The pair is currently consolidating around 20-day SMA near 0.7750, which now seems to act as pivot-point for the pair's intra-day movement. 

Technical levels to watch

Above 0.7750 support, the pair seems to make a fresh attempt to retest 100-day SMA resistance near 0.7795-0.7800 handle, which if conquered sets the stage for additional up-move towards 50-day SMA resistance near 0.7845-50 region.

Alternatively, weakness below 0.7750 is likely to find immediate support near 0.7725-20 region, below which the pair seems to break below 0.7700 handle and head towards testing 0.7665-60 support area.