EUR/GBP consolidates near 0.90 mark, 1-month lows ahead of UK jobs report

The EUR/GBP cross seems to have entered a consolidation phase and was seen oscillating in a 20-pips narrow trading range around the key 0.90 psychological mark.

The cross on Tuesday slumped to its lowest level August 10 following a larger than expected jump in the UK headline CPI. However, a modest uptick in the EUR/USD major helped limit further losses, at least for the time being. 

With the scheduled release of UK jobs report, the British Pound would remain in focus on Wednesday as a robust wage growth would further fuel speculations for a hawkish BoE tilt, when it announces its latest monetary policy decision on Thursday.

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From the Euro-zone, the release of industrial production data is likely to pass unnoticed, with broader sentiment around the GBP acting as an exclusive driver of the pair's movement ahead of Thursday's key event risk.

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Technical levels to watch

On a sustained weakness below the 0.90 handle, the cross is likely to accelerate the slide towards 0.8970 horizontal level ahead of its next support near 0.8935-30 area.

On the flip side, any recovery attempts might now confront fresh supply near the 0.9030-40 region, above which the cross is likely to surpass 0.9060-65 hurdle and aim towards reclaiming the 0.9100 handle.