EUR/GBP offered near 200-day MA, what's next?

• EUR/GBP fades spike to 200-day MA.
• Awaits range breakout.

Currently, EUR/GBP is trading at 0.8814; having clocked a high of 0.8834 and low of 0.8806 earlier today.

An attempt to scale the 200-day MA located at 0.8836 ran out of steam at 0.8834, ensuring the two-day trading range of 0.88-0.8840 remains intact.

That said, the technicals suggest a downside break could be in the offing. Commerzbank Analyst Karen Jones writes, "EUR/GBP recently failed to clear an old Fibonacci retracement at 0.8925 and last week it charted an outside day to the downside." Thus, downside pressure is building.

Also, a big move below 0.88 cannot be ruled out if the ECB's Draghi tames the hawks this Thursday.

EUR/GBP Technical Levels

A break below 0.88 (psychological level) would open doors for 0.8760 (Dec. 15 low) and 0.8733 (Dec. 7 low). On the other hand, breach of resistance at 0.8836 (200-day MA) could yield 0.8880 (100-day MA) and 0.89 (zero levels).