EUR/GBP muted around 0.8900 handle after UK GDP

Having posted a session high at 0.8940 level, the EUR/GBP cross erased all of its tepid gains and turned lower following the release of UK Q3 GDP print.

Currently trading around 0.8910 region, the cross came under some selling pressure, albeit remained within familiar trading range, after UK GDP showed better-than-expected growth during the third-quarter of 2016. UK economy posted a growth of 0.5% on a quarterly basis and surpassed consensus estimates pointing to a growth of 0.3%. The yearly growth came-in at 2.3% as compared to 2.1% expected and also recorded in the previous quarter. 

Better-than-expected growth figure triggered a fresh bout of short-covering and lifted the British Pound across the board. The EUR/GBP cross, however, has failed to gain traction from upbeat GDP print and remained confined within near-term trading range amid steady recovery witnessed around the EUR/USD major. 

Technical levels to watch

From current levels, 0.8885 (weekly low) is likely to act as immediate support below which the cross is likely to extend its corrective slide immediately towards 0.8840 region en-route its next major support near 0.8800 handle. On the flip side, bullish momentum above session peak resistance near 0.8940 is likely to get extended towards weekly high resistance near 0.8980, which if cleared is likely to lift the cross beyond 0.9000 psychological mark towards its next major resistance near 0.9020-25 area.