• EUR/GBP on track for a second consecutive week of declines. Pair has slipped below key trendline support at 0.7895.
   
• Poor labour markets data and household confidence released on Wednesday largely ignored. Markets wary ahead of ECB policy meeting.
   
• While no changes to policy are expected, markets will still be paying close attention to the statement and the comments in President Draghi’s accompanying press conference.
   
• Foreign exchange markets will be particularly interested to see if Draghi reiterates that the ECB does not expected to reduce rates any further following the measures introduced last month.
   
• Focus shall also be on UK monthly retail sales data due later during the day. UK retail sales are expected to show modest declines, but remain solid – however recent data has been surprising lower. 
   
• Technicals are biased lower, the pair is likely to drift lower towards testing the cloud top support, currently near 0.7780
   
• Immediate resistance is located at 0.7899, ahead of 0.79 and then 0.7915 (trendline).