EUR/GBP: was the ECB news a game changer, eyes on 0.90 the figure?

Currently, EUR/GBP is trading at 0.9166, down -0.48% on the day, having posted a daily high at 0.9225 and low at 0.9158.

EUR/GBP dropped on during the release of the nonfarm payrolls data when, at the same time, news hit the wires that the ECB will not be tapering at next week's meeting on the back of a Bloomberg report said that ECB wants extreme prudence on policy and communication. 

 ECB reportedly sees chance that QE plan won't be ‘fully ready’ until Dec - BBG

This exposed the euro to sellers and not even the poor outcome of the nonfarm payrolls data could support a sustained rally that met 1.1980 the high before sellers took the unit down to make a fresh low for the new month at 1.1874 so far vs the greenback, -0.32%. Sterling remains +0.31% on the day so far and propped up by not just a poor NFP outcome, but the hawkish tone from BoE's Saunders. However, the MPC are still likely on hold indefinitely given the extent to which the Bank sees Brexit uncertainty dampening potential withdrawal of accommodation seemed to be greater than the market had anticipated.  This uncertainty was stressed in the last statement, minutes, Press Conference and Q&A.

US: Total nonfarm payroll employment increased by 156,000 in August

EUR/GBP levels

In the overall technical picture, EUR/GBP has faltered ahead of the 2008-2017 resistance line at 0.9344, explained analysts at Commerzbank. "Together with the 0.9403 October 2016 high, this represents tough resistance which is likely to hold the initial test. Attention turns to the four-month support line at 0.9000. The up move remains intact above here. Where are we wrong? Below the 55 day ma at 0.8960 would target the 0.8743 14th July low," the analysts argued.