EUR/GBP drops to session lows on stronger UK GDP

   •  Turns lower after UK GDP figures
   •  Upbeat German IFO limits downslide
   •  Thursday’s ECB decision holds the key

Having posted a session high level of 0.8973, the EUR/GBP cross turned lower and refreshed session lows post-UK GDP figures.

UK GDP beats estimates

Currently trading around 0.8935 level, the cross met with some fresh supply and quickly retreated around 40-pips after the first UK GDP estimate showed a slightly better-than-expected economic growth of 0.4% (0.3% expected) during the three months to September. 

   •  The UK Q3 2017 prelim GDP unexpectedly rises to 0.4%

Meanwhile, the cross had a rather muted reaction to the latest Brexit headlines, wherein the UK Brexit Secretary David Davis, during his testimony before the Select Committee, was noted saying that free trade deal with EU will be agreed before March 2019.

Downside cushioned by German IFO 

The downside, however, remained cushioned by today's upbeat German IFO business climate index, which was seen lending some support to the shared currency. 

With the key macro EZ/UK macro data out of the way, any fresh Brexit related news might influence the pair's movement ahead of Thursday's key event risk - the highly anticipated ECB monetary policy decision. 

Technical levels to watch

Immediate support is pegged near 0.8925 level, below which the cross could break below the 0.8900 handle and head towards testing 0.8885-80 support area. 

On the upside, 0.8975 area now seems to have emerged as immediate resistance, above which the cross could make a fresh attempt towards conquering the key 0.90 psychological mark.