EUR/GBP remains on the defensive near weekly lows, below mid-0.8900s

The EUR/GBP cross remained depressed through the mid-European session and was last seen hovering near the lower end of its weekly trading range, just below mid-0.8900s.

The cross added to the previous day's losses and witnessed some follow-through selling for the second consecutive session on Wednesday. The downfall also marks the third day of a negative move in the previous four and was sponsored by the British pound's relative outperformance against its European counterpart.

The sterling remained well supported by hopes that Britain and the European Union could reach a Brexit divorce agreement by the beginning of next week. Adding to this, Wednesday's higher-than-expected UK consumer inflation figures further underpinned the pound and exerted some downward pressure on the EUR/GBP cross.

On the other hand, the shared currency benefitted from the emergence of some selling around the US dollar and seemed rather unaffected by the final version of the Eurozone consumer inflation figures. This, in turn, seemed to be the only factor that helped limit further losses for the EUR/GBP cross, at least for now.

Investors might also be reluctant to place any aggressive bets, rather prefer to wait for fresh Brexit updates before positioning for the next leg of a directional move. It is worth reporting that  EU negotiators are reportedly due to update envoys of the bloc's 27 member states on the latest in trade talks with Britain at 0700 GMT on Friday.

Hence, any subsequent fall is more likely to find decent support, rather attract some dip-buying near the 0.8900 round-figure mark. That said, a convincing breakthrough will be seen as a fresh trigger for bearish traders and set the stage for a fall back towards testing last week's swing lows, around the 0.8860 region.

Technical levels to watch