EUR/GBP fails to gain traction from upbeat German IFO

The EUR/GBP cross maintained range-bound price action around 0.8900 handle and failed to gain any impetus from German IFO index. 

German IFO business climate index for October came-in at 110.5, better-than-expected and previous month's 109.5. Meanwhile, the current assessment index rose to 115.0 and expectations index also surpassed consensus estimates and printed 106.1 for October. Upbeat German IFO index provided little respite for the shared currency but seems to have extended support to limit losses for the time being. 

Meanwhile, concerns of 'hard Brexit' continues to undermine the British Pound and has led to a near-term range-bound price action around the EUR/GBP cross.

Later during the day, speeches from ECB President Mario Draghi and BoE Governor Mark Carney will grab all the attention and trigger a fresh bout of volatility in the FX market, eventually triggering a fresh leg of directional move for the cross.

Technical levels to watch

From current levels, 0.8915-20 region seems to act as immediate barrier above which the cross is likely to extend the recovery momentum towards 0.8975 resistance area before attempting a move beyond 0.9000 psychological mark. On the downside, a follow through selling pressure below 0.8885 area is likely to accelerate the slide immediately towards 0.8840 support en-route its next major support near 0.8800 handle.