EUR/GBP muted reaction to UK CPI, stuck in a range around 0.9000 handle

The EUR/GBP cross had a muted reaction to UK CPI print and continued with its near-term range-bound price action around 0.9000 handle. 

According to the report released by the National Statistics, UK headline inflation, as measured by CPI, rose to 1.0% y-o-y in September as compared to 0.8% expected and 0.6% recorded in August. Meanwhile, the core CPI print, which excludes volatile food and energy products, came-in at 1.5% against 1.4% expected and previous 1.3%. 

The data provided little impetus and the cross remained confined within 4-day old trading range,  extending its consolidative phase in around 100-pips trading range. Investors this week will also confront release of other important UK macro data, including jobs report and monthly retail sales figures, later in the week, and ECB monetary policy decision, which would assist traders to determine the pair's next leg of directional move.

Technical levels to watch

From current levels, a follow through selling pressure below 0.8980-75 support is likely to accelerate the slide towards 0.8940-35 intermediate support before the cross aims towards testing 0.8900 handle.

On the upside, recovery momentum above 0.9020 immediate barrier seems to get extended towards 0.9040-45 strong resistance above which the pair is likely to make a fresh attempt towards reclaiming 0.9100 handle and aim towards its next resistance near 0.9115 level.