EUR/GBP flirting with 0.8800 handle ahead of EZ GDP & CPI

   •  Dovish ECB decision continues to weigh. 
   •  EZ GDP and flash CPI eyed for some impetus. 
   •  Thursday's BoE decision holds the key.

The EUR/GBP cross remained under some selling pressure for the fifth consecutive session and is now headed back to monthly lows, touched yesterday.

Currently hovering around the 0.8800 handle, last week's dovish ECB decision continues to contribute towards the shared currency's relative underperformance and has been one of the key factors weighing on the cross. 

Moreover, increasing prospects for an imminent BOE rate hike action, especially after the latest upbeat UK GDP growth figures, underpinned the British Pound and further collaborated to the pair's downward trajectory. 

Moving ahead, today's Euro-zone macro data - prelim Q3 GDP and October inflation figures, would now be looked upon for some immediate respite for the bulls. Meanwhile, Thursday's key BOE meeting would remain a key determinant of the pair's next leg of directional move.

   •  EUR: Clean sweep of positive EZ data releases may provide welcome relief - ING

Technical levels to watch

A sustained weakness below the 0.8800 handle has the potential to continue dragging the cross towards 0.8785-80 horizontal zone en-route the very important 200-day SMA support near mid-0.8700s.

On the upside, any recovery above 0.8820-25 area might now confront fresh supply near the 0.8855-60 region, which if cleared might trigger a short-covering bounce towards the 0.8900 handle ahead of 0.8930 hurdle.