EUR/GBP sits at session tops, around mid-0.8900s ahead of EZ CPI

The EUR/GBP cross traded with mild positive bias on Monday and is currently placed at session tops near mid-0.8900s ahead of the flash Euro-zone CPI print.

The cross continued with its consolidative price action within a 5-day old broader trading range held at the beginning of an event packed week, featuring the important releases of UK PMI prints and the BOE monetary policy decision. 

Traders on Monday would take cues from the flash estimate of Euro-zone CPI print for July, which is expected to show that the headline CPI rose 1.3% y-o-y as compared to 1.3% recorded in the previous month. 

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Against the backdrop of growing market expectations of a possible ECB tapering at the September meeting, a slight better-than-expected CPI print would underpin the shared currency and help the cross to make a fresh attempt to conquer the key 0.90 psychological mark.

Technical levels to watch

Immediate resistance is pegged near 0.8970 level (Friday's high), above which the cross is likely to surpass the 0.90 handle and head towards testing its next major hurdle near the 0.9030 region. On the flip side, weakness below 0.8940-35 region might continue to find support near the 0.8900 handle, below which the corrective slide could get extended towards its next support near 0.8865 level.