EUR/GBP confined in a range, around 0.8735 ahead of EZ CPI

The EUR/GBP cross has managed to bounce off few pips from weekly lows but lacked any strong follow through traction and was seen consolidating with a 20-pips narrow trading range.

Currently hovering around 0.8735 region, the cross struggled for a firm direction and was seen consolidating precious session's hawkish BoE-led slide amid lackluster trading action on the last trading day of the week. 

Despite of the BoE's hawkish bend, the cross lacked any strong follow through selling pressure as investors held back from buying the British Pound in wake of the recent economic and political developments, and the impending Brexit negotiations.

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Meanwhile, a mildly weaker tone around the US Dollar, supporting a modest up-tick in both the EUR/USD and the GBP/USD major, has led to a subdued trading action around the EUR/GBP cross. 

Investors now look forward to today's final Euro-zone CPI print, due for release in a short while from now, for some fresh trading impetus. Against the backdrop of cautious ECB stance, easing inflationary pressure might attract some fresh selling pressure around the shared currency and continue weighing on the cross. 

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Technical levels to watch

A follow through selling pressure below 0.8720 level could drag the cross further towards the 0.8700 handle ahead of its next major support near 0.8655-50 region.

On the flip side, any up-move now seems to confront resistance near 0.8755-60 zone, above which a bout of short-covering could lift the cross back towards the 0.8800 handle.