EUR/GBP extends 3-day losing streak, peeps below trendline support

• EUR/GBP under pressure on German political uncertainty.
• The pair clocked session lows below the trendline sloping upwards from the Nov. 1 low and Nov. 10 low.  

Heightened German political uncertainty is boding well for the EUR/GBP pairs today. The currency pair fell to a nine-day low of 0.8874.

The common currency came under pressure in Asia as German Chancellor Angela Merkel's efforts to form "Jamaica" coalition fell apart, leaving the head of the EU's strongest economy with two options - form minority government or opt for re-elections.

Still, the pair is holding above the trendline support and Nov. 19 low of 0.8879 as GBP bulls remain on the sidelines on account of the Brexit uncertainty. 

Looking ahead - The data calendar is light, but it is a busy day for ECB speak. Nowotny will speak at 11:45 am GMT, Lautenschlaeger at 12:15, Draghi at 2 pm and again at 4 pm, and Constancio at 2:15. Analysts at TD Securities believe Draghi’s appearance before the European Parliament at 2 pm is probably most worth keeping a close eye on.

Also, GBP Deputy Governor David Ramsden, who voted against the BoE’s rate hike earlier this month, will deliver a speech at 6:30 pm GMT.

EUR/GBP Technical Levels

As of writing, the currency pair is trading at the trendline support of 0.8877. A break below the same would expose 0.8865 (4-hour 100-MA), under which a major support is seen at 0.88 (zero levels). On the higher side, resistance is seen at 0.89 (Friday's low) ahead of 0.8923 (session high) and 0.8951 (100-day MA).