EUR/GBP en route for Sep lows?

• EUR/GBP offers are testing 0.8770.
• BoE supporting, for now.

Currently, EUR/GBP is trading at 0.8783, down -0.43% on the day, having posted a daily high at 0.8826 and low at 0.8778. EUR/GBP is chipping away below the 0.88 handle while EUR crosses have been mixed overnight due to the data that saw EZ CPI softer but GDP and jobless looking better. 

Eurozone Q3 GDP: New cycle high - Wells Fargo

The markets await the BoE and are pricing in a Boe rate hike that is adding to the offer in the cross and lifting cable through to the highs of 1.3270's at the time of writing. 

A dovish hike from BoE would weigh on GBP/USD

"A dovish hike by theBOE, or no hike, for that matter, could send sterling back toward $1.30 for a more significant challenge.  On the other hand, a broader dollar pullback and hawkish comments or forecasts could see sterling challenge $1.3350-$1.3400," explained analysts at Brown Brothers Harriman. 

EUR/GBP levels

"The 2015-2017 uptrend at 0.8821 has been eroded and attention has reverted to the major band of support, which extends down to 0.8723/56, the July and September lows, the 200 day and 55-week ma. Below 0.8723 would target the 0.8530/78.6% retracement of the move seen this year," analysts at Commerzbank argued.