EUR/GBP treading water above 0.86 ahead of UK CPI

FXstreet.com (Barcelona) - The EUR/GBP foreign exchange cross rate is last trading flat for the week at 0.8608, off yesterday's double weekly low at 0.8580, same lows as of past Wednesday, ahead of key UK CPI data at 08:30 GMT, followed by German ZEW and EU industrial production half hour later.

EUR/GBP lower if UK data outperforms

“If the data this week are firmer than expected in the UK we see downside risk for EUR/GBP,” said Greg Gibbs, Senior FX Trading Strategist at RBS, adding: “After the CPI data, we get the unemployment data on Wednesday. RBS economists are forecasting a 2.9% headline CPI, unchanged from June, a tick above the market median of 2.8%. However, RBS forecasts core inflation to tick down from 2.3% to 2.2%, in line with the market median.”

EUR/GBP key technical levels

Immediate resistance to the upside for EUR/GBP shows at recent session highs/July 12 lows 0.8610, followed by August 08/Friday's highs at 0.8623/19, and July 25 highs at 0.8645. To the downside, closest support lies at session lows 0.8597, followed by August 07/yesterday's lows at 0.8580/77, and July 10 lows 0.8573.