EUR/GBP: bounces from 0.8850 that guards the 2015-2017 uptrend

• UK GDP is a relief for sterling, otherwise weighed by negative sentiment.
• 0.8850 guards the 2015-2017 uptrend.

EUR/GBP is in a recovery of the recent sell-off from the aforementioned highs since the UK data that showed that the nation's Q3 GDP beat expectations, making for a relief rally in sterling. 

UK´s GDP was estimated to have increased by 0.4% in the three months to September, above an expected 0.3% with the services sector being the largest contributor to GDP growth. On a yearly scale, the economy grew by 1.5% according to the same estimates, slightly below the 1.4% expected. Meanwhile, and according to the Catalan vice president Oriol Junqueras, Spain has given region's separatists no option but to proclaim a new republic. Eyes will now be with the ECB and the potential of a dovish taper that should keep a lid on the correction.

ECB to err on the dovish side - Nomura

EUR/GBP levels

To the downside, below 0.8850/80 and 0.8800, is where the next major band of support extends from the 14th July low at 0.8748 to 0.8720 being the 2015-2017 uptrend and where the 200 DMA and the 55-W MA are also located. To the upside, the correction through the 50-D SMA, now at 0.8994, failed to hold in earlier sessions and is a key pivotal point where the base of the cloud is located along with the 50% retracement at 0.9027 as another key turn-point area for the bulls. 0.9033 was the 12th Oct high.