EUR/GBP flirting with lows post EZ GDP and UK PMI

The EUR/GBP cross extended stronger-than-expected UK PMI-led slide and has now dropped to session lows near 0.8930-25 band. 

With markets looking past yesterday's positive surprise from the Euro-zone core CPI reading, which reinforced market expectations of a possible ECB tapering at the September meeting, the pair ran through some fresh offers on Tuesday amid some profit-taking slide witnessed around the EUR/USD major. 

The selling pressure aggravated during European session in reaction to today's upbeat UK manufacturing PMI print, advancing to 55.1 in July as against 54.3 anticipated and previous month's 54.2 (revised lower from 54.3 reported earlier). 

Meanwhile, the release of prelim Euro-zone GDP print for the second quarter of 2017 went unnoticed, with the prevalent positive sentiment around the British Pound acting as an exclusive driver of the pair's fall on Tuesday.

Eurozone prelim Q2 GDP growth meets expectations

It, however, remains to be seen if bears remains in control of the cross once again catches some fresh bids near the 0.8900 handle as market participants look forward to the next big event risk - BOE monetary policy announcement on Thursday.

Technical levels to watch

A follow through selling pressure below 0.8925 level, the cross could be headed back to retest the 0.8900 handle before eventually dropping to its next support near 0.8860-55 region. On the upside, momentum back above the 0.8960 level now seems to assist the cross to make a fresh attempt towards conquering the key 0.90 psychological mark and head towards its next hurdle near 0.9030 level.