EUR/GBP corrects from near two-week highs, drops to mid-0.8800s post-UK PMI

The EUR/GBP cross snapped its three consecutive days of winning streak and corrected a bit from near two-week highs following the release of UK macro data. 

Currently trading around mid-0.8800s, the cross met with some fresh supply after the latest UK services PMI surpassed expectations and came-in at 53.6 for September, as compared to previous month's reading of 53.2.

Against the backdrop of this week's disappointing UK manufacturing and construction PMI numbers, today's slightly better-than-expected print provided a much needed respite for the British Pound. 

A modest pickup in the Sterling prompted traders to take some profits off the table, especially after the pair's recent upsurge of over 130-pips from last week's 1-1/2 month lows and ahead of the ECB President Mario Draghi's scheduled speech, later during the day.

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Technical levels to watch

A follow through weakness below mid-0.8800s is likely to drag the cross back towards 0.8815 horizontal support ahead of the 0.8800 handle. On the upside, the 0.8875-85 region remains immediate strong hurdle, which if conquered should lift the cross beyond the 0.8900 handle towards its next barrier near the 0.8940 region.