Both the sterling and the euro are grinding lower on Tuesday, as risk aversion is creeping back to the markets. The cross is retreating for the second consecutive session, taking a breather in the pronounced upside started in late July.
Inflation figures are due later on, with the headline expected to come a hair lower at +2.5% YoY. The BoE will also publish its inflation letter.
EUR/GBP is now losing 0.15% at 0.8059, with the next support at 0.8038 (low Sep.14) ahead of 0.7995 (MA10d) and 0.7967 (low Sep.11).
On the upside, a break above 0.8114 (high Sep.14) would expose 0.8146 (MA200d) and 0.8163 (high Jun.11).