EUR/GBP attempting a break through 0.8700 handle as Draghi speaks

The EUR/GBP cross reversed all of daily gains to 7-week tops following after the ECB President Mario Draghi's opening comments at the post-announcement press conference. 

The cross accelerated its reversal move from the 0.8700 handle after Draghi reaffirmed that interest rates are seen at present or lower levels for an extended period of time. Draghi further added that there are signs of somewhat stronger economic recovery and surveys indicate recovery could broaden, albeit risks to economic outlook remained tilted to downside.

ECB's Draghi says, there is no sense of urgency to take further action

The cross, however, regained traction after the central bank's new projections for inflation and growth reflected an upbeat economic outlook and triggered a fresh leg of up-move across Euro pairs. 

ECB's Draghi: 2017 inflation seen at 1.7% vs. 1.3%

Earlier on Thursday, the ECB left key benchmark interest rates unchanged and reaffirmed that the asset purchase program will continue at a monthly pace of €60 billion until the end of December 2017. 

ECB left key rate unchanged at 0.00%

Meanwhile, a goodish recovery around the GBP/USD major seems to be collaborating towards limiting the pair's up-move just below Jan. 18 high level of 0.8705.

Technical levels to watch

Bulls would be eying for a sustained break through the 0.8700 handle, above which the cross is likely to extend the upward trajectory towards 0.8720-25 resistance ahead of 0.8765-70 horizontal area. On the downside, 0.8660-55 region remains immediate support to defend, which if breached has the potential to drag the cross back towards 100-day SMA support near 0.8600 round figure mark, with some intermediate support near 0.8640 level.