EUR/GBP retreats to 0.8915

EUR/GBP is falling today almost a hundred pips as it continues to retreat after reaching during Pound’s flash crash multi-year highs near 0.9200. During the American session, the pair bottomed at 0.8913, hitting the lowest level in a week. It was trading at 0.8935, down 1.05% for the day. 

The pound gained momentum during the European session after the release of inflation data from the United Kingdom. The CPI rose 1.0% (y/y) in September, reaching the highest since November 2014. 

Following inflation numbers EUR/GBP broke below the key short-term support around 0.8960/65 and declined further. Tomorrow there will be more data from the UK with the employment report while on Thursday the European Central Bank will hold its meeting. 

Levels to watch 

To the downside, support levels might be seen at 0.8910/15 (daily low), 0.8850 (Oct 6 high) and 0.8775 (Oct 5 low). On the opposite direction, support could be located at 0.8965 (Oct 12 low) and 0.9055 (weekly high).