EUR/GBP clings to gains above mid-0.8900s

The EUR/GBP cross built on is steady up-move for the second consecutive session and has now moved to the upper band of weekly trading range, in the 0.8960-70 region.

Against the backdrop of Monday's hawkish comments by the ECB Executive Board member Lautenschlaeger, fading risk of Catalonia independence has been one of the key factors behind the shared currency's relative outperformance against its British counterpart. 

   •  Italy's ForeignMin: Catalonia’s declaration of independence inadmissible

On Tuesday, Catalonian President Carles Puigdement refrained from making a formal declaration of independence and called for negotiations with Spain. 

   •  Spain’s ForeignMin: Puigdemont's speech was "a trick"

With investors looking past Tuesday's conflicting UK macro data, a mildly weaker tone around the GBP/USD major, amid persistent uncertainty over Brexit talks, remained supportive of the pair's uptick on Wednesday. 

   •  UK’s Hammond: Have to be prepared for a no-deal Brexit outcome

In absence of any major market moving economic releases, market participants would now take clues from Spanish Prime Minister Mariano Rajoy's speech, due later today at 14:00GMT.

Technical levels to watch

A follow through buying interest beyond 0.8980 level now seems to lift the cross even beyond the key 0.90 psychological mark towards its next major hurdle near the 0.9040 region.

On the flip side, weakness back below 0.8930 level could drag the cross back towards weekly lows support near the 0.89 handle en-route its 0.8875 horizontal support.