EUR/GBP muted around 0.8900 handle post-German IFO
• German IFO business climate improves to 117.5 for Nov.
• Renewed GBP demand now seemed to cap gains.
The EUR/GBP cross failed to build on early up-move and retreated around 20-pips from closer to weekly tops resistance near the 0.8920-25 region.
Currently hovering around the 0.8900 handle, the cross had a rather muted reaction to today's solid German IFO business climate index, coming in at 117.5 for November vs. 116.6 expected.
The current assessment index fell short of consensus estimates (124.4 vs. 125 expected) but seems to have been largely negated by upbeat expectations index (111 vs. 108.9 expected).
The data, however, failed to provide any fresh bullish impetus and was being capped by some buying interest around the British Pound, following the UK PM Theresa May's comments to the reporters on arrival at a Brussels summit.
Technical levels to watch
Retracement back below 0.8890 level might prompt some fresh selling and drag the cross back towards 0.8865 horizontal support en-route weekly lows support near the 0.8840 region.
On the upside, 0.8925 area seems to have emerged as an immediate hurdle, which if cleared could lift the cross towards 0.8955-60 horizontal zone en-route the key 0.90 psychological mark.