EUR/GBP flirts with highs near 0.9000 on CPI

The solid momentum in the single currency plus the persistent offered bias in the Sterling is sending EUR/GBP back to the 0.9000 neighbourhood.

EUR/GBP stronger post-CPI

The European cross kept the upbeat sentiment unchanged after German inflation figures have surpassed expectations for the month of October.

In fact, consumer prices tracked by the CPI rose at an annualized 0.8% and 0.2% inter-month. Prices gauged by the broader HICP have followed suit, up 0.7% on a year to October and 0.2% on a monthly basis, vs. 0.6% and 0.1% initially forecasted, respectively.

In the meantime, the outlook on GBP remains fragile and stays the almost exclusive driver of the upside momentum behind the cross, which has managed to regain the 0.9000 handle after several days.

EUR/GBP key levels

The cross is now advancing 0.38% at 0.8993 and a surpass of 0.9143 (high Oct.11) would expose 0.9430 (2016 high, GBP flash crash Oct.7) and then 0.9802 (monthly high Dec.2008). On the other hand, the immediate support is located at 0.8876 (low Oct.21) followed by 0.8862 (4-month support line) and finally 0.8690 (55-day sma).