EUR/GBP confined in a narrow band, eyeing German CPI for impetus

The EUR/GBP cross remained confined in a narrow band on Tuesday and is now testing the lower end of the trading range around 0.8530 level.

A broadly based US Dollar strength has weighed on both, the British Pound and the shared currency, eventually leading to a range-bound price action around the EUR/GBP cross. Even weaker-than-expected release of Net Lending to Individuals and Mortgage Approvals from the UK failed to provide any impetus.

Next on tap would be the Preliminary release of inflation figures from Germany for the month of August. 

From technical perspective, the cross has been oscillating within a narrow trading range in the past five trading session, indicating a consolidation phase ahead of the next break-out momentum in either direction.

Technical levels to watch

On the downside, 0.8500 psychological mark remains key support to defend, which if broken seems to extend the corrective move towards testing 50-day SMA support near 0.8400 level. On the upside, bullish momentum above 0.8560-65 immediate resistance has the potential to lift the pair back towards 0.8600 round figure mark.