EUR/GBP jumps to 0.8980 despite UK data

EUR/GBP broke above 0.8940 and jumped to 0.8980, where weekly highs area located. So far the pair has been unable to break the key short-term resistance but remains with a bullish tone trading near daily highs. 

The euro is consolidating gains versus the pound, that weakened across the board, despite better-than-expected numbers from the UK economy. GDP figures showed a growth rate of 0.5% during the third quarter, above the 0.3% expected. The pound only rose momentarily and then erased gains an now is in negative territory. 

No particular event triggered the recent slide of the pound that pushed EUR/GBP to rise from 0.8930 to 0.8970. Earlier today it traded for a few minutes below 0.8900 but it quickly rose back above. 

Levels to watch

The pair is currently testing the 0.8980 area (Oct 25 high) and a break higher would expose 0.9000; above the next level to watch could be seen at 0.9025/30 (Oct 18 & 20 high). To the downside, support now might be seen at 0.8940 (Asian session high), 0.8900 and then the key 0.8880 zone, where the the lows of the previous and the current week are located.