EUR/GBP tests 100-DMA barrier, just above mid-0.8800s post-UK GDP

   •  UK Q4 GDP growth revised lower.
   •  EUR unaffected by weaker IFO survey.

The EUR/GBP cross built on yesterday's tepid recovery and might now looking to breakthrough 100-day SMA barrier following the release of UK GDP figures. 

The British Pound lost some additional ground after the second estimate of the UK GDP showed 0.4% q-o-q growth during the last quarter of 2017, down from the original reading of 0.5% and also below market expectations. 

Adding to this, the yearly growth rate was also revised lower to 1.4% and further dented the sentiment surrounding the British Pound, which has been recently weighed down by uncertainty surrounding the upcoming Brexit talks. 

Meanwhile, traders seemed to have largely ignored today's disappointing release of German Ifo business climate index, which dropped sharply to 115.4 in February as compared to last month's 117.6 and expectations of 117.0. 

Technical levels to watch

A follow-through buying interest beyond the 0.8855-60 region (100-DMA) has the potential to continue lifting the cross towards back towards the 0.8895-0.8900 heavy supply zone. 

On the flip side, 0.8825 level now seems to have emerged as an immediate support, which if broken might drag the cross back towards challenging the 0.8800 handle before eventually dropping to its next support near the 0.8770-65 region.