EUR/GBP: stabilized again but leans bearish, bears looking beyond 0.8697

• EUR/GBP: back into the bullish correction above the 0.87 handle.
• EUR/GBP: ECB officials making for volatility, but BoE sentiment dominates.

EUR/GBP has been stabilising, holding onto the 0.87 handle, for the most part, currently trading at 0.8720, up 0.03% on the day, having posted a daily high at 0.8731 and low at 0.8692.

EUR/GBP has otherwise been on consolidation on the daily sticks above the horizontal support but below the late Jan forming ascending support line. The cross has been subject to supply on the basis that the BoE is set to hike rates as soon as next month and has lost some of the non-populist movement bid through the euro as focus shifts back to Central Bank divergences. 

In reset to the ECB, as noted by analysts at Scotiabank, "officials have been keen to look through the recent “soft patch” in data to stress that policy normalization is likely to proceed later this year."

ECB shaking things up

ECB Nowotny's views his own and don't represent the governing council

Of the same topic, earlier in the day, ECB's Governor Nowotny reiterated such a view and as the analysts at Scotiabank explained, "when stressing that the Eurozone economy is experiencing a “very strong” expansion and that the time for “gradual policy normalization” is now". However, more recently, a headline was released where the euro took a shoeing from when the ECB said Nowotny's views were his own and don't represent the governing council and that sent the euro in a sharp decline from 1.2355 t0 1.2327, (EUR/GBP down to 0.8706 before recovering back to current 0.8720's).

EUR/GBP levels

The daily RSI hovers over bearish territory and the cross remains under water below the mentioned rising support line on the daily sticks located a cent higher at 0.8820. However, the price action is turning bullish in the daily descent. However, a close below 0.8697 and 0.8667 would open eyes towards the 78.6% retracement at 0.8527 (move up from the 2017 low). Bulls need to get above 0.8800.