FxWirePro: EUR/GBP recovers part of previous session's losses, recovery however lacks traction

Chart - Courtesy Trading View 

EUR/GBP was trading 0.14% higher on the day at 0.8374 at around 12:30 GMT.

The pair closed 0.75% lower on Friday's trade after ECB officials pushed back bets for an early policy tightening.

ECB member Olli Rehn warned on Saturday that overreacting to inflation by the central bank could stem the economic growth. 

Further, ECB's Gabriel Makhlouf said that investors are wrong to bet on a rate hike in June.

Against this backdrop, ECB President Christine Lagarde's testimony before the European Parliament will be awaited for fresh impetus.

Technical bias for the pair is strongly bearish. Price action is extending weakness after rejection at 110-EMA and cloud resistance.

Further weakness on cards. Next major support lies at 0.8284 (yearly low) ahead of 0.8275 (Trendline support). 

Immediate resistance lies at 20-DMA at 0.8371. Bearish invalidation only above daily cloud.