EUR/GBP plummets to 100-DMA support near mid-0.8800s

   •  Extends last week’s dovish ECB-led retracement slide.
   •  Sudden pickup in GBP demand prompts some aggressive selling.
   •  Break below 100-DMA eyed for additional weakness.

The EUR/GBP cross remained under some intense selling pressure at the start of a new trading week and tumbled to over 1-week lows in the past hour. 

The cross extended last week's post-ECB retracement slide from over 3-month tops and has now lost over 100-pips to currently trading around 100-day SMA support, near mid-0.8800s. 

The latest leg of sharp fall over the past hour or so could be solely attributed to a sudden pickup in demand for the British Pound. This coupled with possibilities of some stops being triggered, on a decisive break below the 0.8880-75 region, further collaborated towards aggravating the selling pressure. 

Meanwhile, a softer tone around the shared currency did little to lend any support, with the GBP price dynamics acting as an exclusive driver of the pair's slump back closer to monthly lows. 

It, however, remains to be seen if bulls are able to defend the 100-day SMA support or a follow-through long-unwinding pressure continues exerting some downward pressure amid empty economic docket. 

Technical levels to watch

A follow-through weakness below mid-0.8800s (100-DMA) is likely to accelerate the fall towards 0.8820-15 intermediate support en-route the 0.8800 handle. On the upside, any recovery attempts might now confront immediate resistance near the 0.8875-80 region, above which the cross seems all set to surpass the 0.8900 handle and aim towards retesting an important support zone near mid-0.8900s.