EUR/GBP: pushing back up to middle of long-term channel ahead of German CPI, Powell testimony

• EUR/GBP pushing back up into long-holding consolidation range.
• Powell testimony, May's Brexit speech promise to impact market volatility.

The Euro is treading water against the Sterling heading into the European market session, currently trading just below 0.8830.

The EUR/GBP pair has regained some composure, climbing from a low of 0.8771 following a decline from 0.8919. 

The Euro has a wide docket of data coming out today, most of it low- to mid-tier, with the exception of CPI figures for Germany, due at 13:00 GMT. market forecasts are calling for a slight contraction in the headline figure, 1.3% versus the previous 1.4%.

The Sterling also has limited data due this week, but Prime Minister Theresa May will be providing her outline for the UK's exit from the European Union (EU) post-Brexit, which begins in March.

The EUR/GBP can expect plenty of knock-on volatility when new Fed chairman Jerome Powell testifies before Congress in his first big appearance since taking over the post from Janet Yellen. Chairman Powell is due to begin testifying at 15:00, but the text will be available 90 minutes earlier, at 13:30.

EUR/GBP Technicals

The pair has been consolidating since tumbling from 0.9305 in August of 2017, and the trend looks set to continue until a fundamental change takes places between either currency. Support is being provided from 0.8770 and 0.8732, while resistance is priced in from 0.8863 and 0.8888.