EUR/GBP continues losing ground, lowest since early Feb.

   •  UK wage growth data surprise on the upside and fuel BoE rate hike speculations.
   •  Near-term oversold conditions/UK CBI data might help limit further downside.
   •  Traders now look forward to BoE decision for a fresh directional impetus.

The EUR/GBP cross extended post-UK jobs data slide and is currently placed at its lowest level since early Feb.

The cross changed course and turned lower for the fifth consecutive session after the latest UK wage growth data surprised on the upside. Against the backdrop of recent Brexit optimism, the upbeat data gave investors reason to speculate that the BoE could again raise interest rates in May and prompted some fresh GBP strength. 

The cross fell to an intraday low level of 0.8723 but the selling pressure now seems to have abated following the release of Confederation of British Industry (CBI) Industrial Trends Orders, coming in at 4 for the month of March as against previous month's reading of 10. 

It would now be interesting to see if bears are able to maintain their dominant position or bears opt to take some profits off the table, amid near-term oversold conditions and especially ahead of Thursday BoE announcement.

Technical levels to watch

A follow-through selling pressure might now expose a test of the 0.8700 handle, below which the cross might turn vulnerable to extend its bearish trajectory in the near-term. On the upside, the 0.8745-50 region now seems to act as an immediate hurdle, which if cleared might prompt a short-covering bounce and lift the cross back towards the 0.8800 handle.