FxWirePro: EUR/GBP slips below 0.74 handle, focus on UK inflation data

EUR/GBP slips below the 0.74 handle after German inflation data, Germany consumer price index (Y/Y) in line with forecasts (0%) in September.

• SABMiller & AB InBev agree 44 pound a share takeover, big deal further boosting GBP adding pressure on the cross
   
• The pair has edged lower after hitting session highs at 0.7425 and is looking to consolidate below the 0.7400 handle on Tuesday, currently trading at 0.7399
   
• Markets focus on UK's inflation data due ahead expectations are for headline prices to have come in flat during Sept, while core price are seen at 1.1% y/y
   
• German ZEW Survey will also be watched for cues, confidence is expected to ease some ground for the current month from September's prints
   
• Strong resistance is seen around 0.7424 levels, daily Stochs are at oversold and RSI is biased lower, short term correction could ensue
   
• Breaks below 0.7390 could take the pair to 0.7340 levels, bearish invalidation above 0.7430
   

Recommendation: Good to sell rallies around 0.7410, SL: 0.7430, TP: 0.7340