EUR/GBP mildly lower ahead of EU CPI

The EUR/GBP cross struggled to build on overnight recovery move from closer to last week's 2-1/2 month low but has held on to its move back above 0.8500 handle ahead of Euro-zone CPI release. 

Currently trading around 0.8515 region, mostly in-line German employment details, released just a while ago, failed to provide any fresh impetus and the cross remained confined in a narrow trading range. Earlier on Wednesday, the cross also had a muted reaction to the release of BOE's latest bank stress test results alongside the release of Financial Stability Report and subsequent press conference address by BOE Governor Mark Carney.

Investors now look forward to the flash version of composite Euro-zone CPI print for the month of November, which is likely to be key driver for the shared currency and eventually drive the cross during European trading session. Later during the day, ECB President Mario Draghi's speech would grab investors' attention for clues over the central bank's next monetary policy move at its next monetary policy meeting on December 8. 

Technical levels to watch

Weakness below 0.8500 handle might continue to find support near 0.8470-65 region, which if broken decisively might now drag the cross towards 0.8420 support area (Sept. 12 low) en-route 0.8400 round figure mark. On the upside, 0.8535-40 region now seems to have emerged as immediate resistance above which the recovery momentum should lift the cross immediately towards 0.8590 level before the cross makes an attempt to reclaim 0.8600 handle.