EUR/GBP remains weak near 0.90 mark after EU CPI and GDP

The EUR/GBP cross had a muted reaction to in-line Euro-zone economic releases and maintained its bearish bias around 0.9000 psychological mark.

The flash version of composite Euro-zone consumer inflation, as measured by CPI, showed headline inflation ticked higher in October and rose to 0.5% y-o-y, while core CPI advanced at an annualized pace of 0.8%. Meanwhile, region's economic growth (GDP) held stable and came-in at 0.3% q-o-q for the third quarter of 2016. Today's data failed to impress bulls and the shared currency maintained its offered tone across the board. 

Meanwhile, a fresh bout of selling pressure around the British Pound extended support and helped limit the downslide as market participants now look forward to BoE's super Thursday for fresh near-term directional impetus.

Technical levels to watch

On a sustained weakness below 0.8985 session low support, the cross is likely to immediately drift to 0.8945 (Friday's low) before aiming towards 0.8900 round figure mark. On the upside, a follow through buying interest above 0.9000 mark, leading to momentum through 0.9025 session high resistance, has the potential to continue boosting the pair further towards testing its next major resistance near 0.9100 handle.

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