EUR/GBP flirting with highs near 0.8430, UK data eyed

EUR/GBP is posting moderate gains on Tuesday, although it remains on the lower end of the range near 0.8430 following yesterday’s drop.

EUR/GBP focus on UK CPI

The recent pick up in the demand for the Sterling has been weighing on the European cross at the beginning of the week, dragging it to the vicinity of 0.8410 where it seems to have found some decent support.

Later in the session, GBP will retake centre stage in light of the publication of UK’s inflation figures for the month of August. According to prior surveys, consumer prices are expected to have risen at an annualized 0.7% while Core CPI is seen at 1.4% YoY.

On this side of the Channel German and EMU’s Economic Sentiment are expected to improve for the current month to 2.5 and 6.7, respectively.

EUR/GBP key levels

The cross is now advancing 0.08% at 0.8431 and a surpass of 0.8473 (55-day sma) would aim for 0.8512 (resistance line prev support) and then 0.8575 (61.8% Fibo of Aug-Sep drop). On the other hand, the immediate support lines up at 0.8329 (low Sep.6) ahead of 0.8248 (low Jul.14) and then 0.8187 (100-day sma).