EUR/GBP revisits daily lows after German CPI

EUR/GBP retested daily lows as the euro weakened slightly on the back of soft German inflation numbers.

EUR/GBP, which was already under pressure, fell back to the 0.8515 area following the inflation data. It was last trading at  0.8517, recording a 0.21% loss on the day.

German CPI remained flat in August and was up 0.4% from a year earlier, below expectations of +0.1% and +0.5% respectively. Meanwhile, the harmonized price index for EU purposes,  fell by 0.1% in August and rose by 0.3% on the year (versus 0.1% and 0.5% expected).

EUR/GBP levels to watch

In terms of technical levels, next supports are seen at 0.8484 (Aug 25 low), 0.8460 (Aug 8 low) and 0.8429 (50-day SMA). On the other hand, resistances line up at 0.8574 (10-day SMA), 0.8600 (psychological level) and 0.8628 (Aug 23 high).