EUR/GBP holding close to yesterday's low as Brexit and ECB weigh

• EUR/GBP consolidates for the week.
• Brexit, dovish ECB plaguing the pair going forward.

EUR/GBP is still trading near Thursday's low of 0.8822 after declining in Tokyo trading and Sterling confidence is sapping heading into the European session.

The Euro and the Sterling are chasing each other to the bottom as Dollar buying returns to market for Friday; the Euro is running out of buyers as the European Central Bank's (ECB) continued steady hand in the face of inflation and a sluggish pace towards interest rate increases is beginning to leave the Euro behind, while Brexit weighs down the Queen's currency.

The latest development in the Brexit saga sees Theresa May's recent capitulation to Brussel's demands regarding residency of EU citizens post-Brexit has left hard-line Brexiteers within May's ruling Conservative party furious with the PM, as concessions to EU leaders over Brexit negotiations undermine British sovereignty.

EUR/GBP Technicals

The pair has been in a sloppy channel since September of 2017, and the 200-day SMA floats above at 0.8876. Support for the pair comes from the bottom of the channel at 0.8750, with resistance at the channel top near 0.8911, while interim support/resistance is priced in at 0.8804 and 0.8857 respectively.