EUR/GBP consolidative around 0.8900, IFO eyed

EUR/GBP is posting decent gains following the closing bell in Asia on Tuesday, hovering over the 0.8900 area ahead of the German IFO.

EUR/GBP attention to IFO, Carney

The European cross keeps the trade around the 0.8900 handle for the time being, as no major movements/news have developed in both the Sterling and the common currency so far this week.

Following yesterday’s positive results from advanced PMIs for the current month, EUR will remain vigilant on the release of the German IFO, expected to come in a tad higher during October.

Across the Channel, GBP will take centre stage, as Governor M.Carney will speak on the economic consequences of Brexit before the House of Lords Economic Committee.

EUR/GBP key levels

The cross is now advancing 0.11% at 0.8902 and a surpass of 0.9143 (high Oct.11) would expose 0.9430 (2016 high, GBP flash crash Oct.7) and then 0.9802 (monthly high Dec.2008). On the other hand, the immediate support is located at 0.8876 (low Oct.21) followed by 0.8838 (4-month support line) and finally 0.8676 (55-day sma).