EUR/GBP holding but ready to move, EU PMIs to drop soon

• EUR/GBP flat heading into London.
• EU PMIs, Mario Draghi speech, and BoE interest rates promise a volatile week.

EUR/GBP is currently trading very tightly against Friday's session high, testing the 0.8825 level ahead of the London market open. EUR/GBP had a volatile ride last week as the Euro and the Sterling trade places with each other in risk sentiment, and the data-laden week ahead will do little to keep the pair calm.

European markets have Markit Service PMIs today for the broad region, with staggered releases for Spain(08:15 GMT), Italy(08:45), France(08:50), and Germany(08:55); Services and Composite PMI for the overall European Union will finish off the Markit data at 09:00 this morning. Traders can expect some volatility around 16:00 when Mario Draghi, the President of the European Central Bank, testifies before the European Parliament in Strasbourg; market participants hoping to glean clues about the ECB's interest rate policy going forward.

The Sterling will be gearing up for a hefty dose in the latter half of the week with the BoE's Interest Rate Decision, Monetary Policy Summary, and the bank's Meeting Minutes, all  hitting the markets at once on Thursday at 12:00 GMT; December data for Industrial and Manufacturing Production will round out the week at 09:30 on Friday. Meanwhile, European Markit Services PMIs beginning at 08:15 could provide some knock-on volatility for the pair today.

EUR/GBP Technicals

The Euro  ended last week on a tear against the GBP, but that momentum could be shortlived, and a retracement from here to the 50.0-61.8 Fibo retracement area (0.8772-0.8759) could see a higher low priced in before the next leg up. Intraday traders will be looking for a decisive break of the range between 0.8826 and 0.8818 to determine a direction for the day. Long-term traders looking at Daily charts will note that price is still challenging the 200-day SMA, but still beneath it, and the 34-EMA has begun to price in a bigger deviation after crossing the 200-SMA last week.

Today's pivot points:
R2: 0.8870
R1: 0.8846
PP: 0.8801
S1: 0.8777
S2: 0.8733