The EUR/GBP cross has been confined within a narrow trading band on Monday and has now erased its tepid recovery gains to session peak level of 0.8914.
Currently hovering around 0.8900 handle, the cross had a muted reaction to better-than-expected flash Euro-zone PMI prints for October. The composite Euro-zone flash manufacturing PMI came-in at 53.3 as against 52.6 expected, while services PMI printed 53.5 versus expected reading of 52.5.
The ongoing recovery staged by both, the GBP/USD and the EUR/USD majors, has failed to provide any directional impetus for the EUR/GBP cross and the cross was seen consolidating around a two-week low touched last week in the aftermath of ECB-led intense selling pressure around the shared currency.
Next on tap would be the release of CBI Industrial Orders expectations from UK, which again is likely to be a non-event for the cross.
Technical levels to watch
Immediate resistance beyond 0.8915 (session high) is pegged at 0.8930 level above which the cross is likely to extend the rebound towards 0.8975 resistance area. On the downside, a follow through selling pressure below 0.8890 now seems to accelerate the slide towards 0.8840 intermediate support en-route its next major support near 0.8800 handle.
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