EUR/GBP turns mildly positive, focus on German CPI

Having retested sub-0.8600 handle, the EUR/GBP cross has managed to recover all of its lost ground and is now inching closer towards session peak.

Currently trading around 0.8620 region, the cross since yesterday has been oscillating in a 50-pips trading band amid range-bound price action around the EUR/USD and the GBP/USD major. 

Despite of Thursday's release of slightly weaker-than-expected German unemployment figure, the cross held on to tepid recovery gains above 0.8600 handle. German data released just a short while ago showed the number of unemployed people during the month of August rose by 1K as compared to expected fall by 5K.

Traders on Thursday will be focusing on the preliminary release of German CPI print for the month of September, which is expected to remain flat on monthly basis for second consecutive month.

Technical levels to watch

From current levels, 0.8640 (yesterday's high) seems to act as immediate resistance above which the cross is likely to dart towards 0.8655 resistance area. On a sustained move back above 0.8655 resistance, the cross is likely to make a fresh attempt towards reclaiming 0.9700 handle.

On the flip side, 0.8590 level remains immediate support to defend, which if broken is likely to accelerate the slide towards 0.8565-60 support area. A convincing break below 0.8565-60 support, the cross is likely to extend its corrective move further towards 0.8500 psychological mark with 0.8535 acting as intermediate support.