EUR/GBP - in search of a firm direction, stuck in a range below mid-0.8900s

   •  Recovers early lost ground to 0.8915 level. 
   •  Carney’s comments on disorderly Brexit weigh on GBP. 
   •  Weaker EUR keeps a lid on additional gains. 

The EUR/GBP cross lacked any firm directional bias and seesawed between gains/losses within a 40-pips broader trading range below mid-0.8900s.

The cross initially extended overnight retracement from 1-1/2 week tops and dropped to an intraday low level of 0.8915 before quickly rebounding to mid-0.8900s following the BOE Governor Mark Carney's press conference about the Financial Stability Report and Bank Stress Test Results.

Carney's comments, that disorderly Brexit would result in weaker economy and higher unemployment, prompted some fresh selling around the British Pound. The upside, however, remained capped amid some renewed weakness witnessed around the EUR/USD major.

In absence of any major market moving economic releases, the cross seems more likely to hold above the 0.8900 handle and wait for fresh catalyst before the next leg of directional move. 

Technical levels to watch

The 0.89 handle underneath might continue to act as immediate strong support, below which the cross could be headed back towards the 0.8855-50 region en-route the very important 200-day SMA support near the 0.8800 handle. 

On the upside, sustained momentum beyond mid-0.8900s could assist the cross to make a fresh attempt towards reclaiming the key 0.90 psychological mark before eventually lifting it further towards 0.9020-30 supply zone.