EUR/GBP turned positive on Monday, breaking Thursday’s losing streak. Stronger inflation data in the euro area modestly strengthens the euro and provides support. A combination of factors appears to support the pound and could limit the gains of the cross. The , EUR/GBP cross will attract buying near the 0.8575-0.8570 area on Monday, taking Thursday’s losing streak to its lowest level since early September. Intraday momentum is building after the release of stronger consumer inflation data from the Eurozone, pushing spot prices above 0.8600 in the first half of the European session. The latest data from Eurostat showed that the annual YCPI of the euro area accelerated to 10.7% in October from 9.9% in the previous month. In addition, core indicators rose to 5.0 percent year-on-year in the reviewed month, compared to the expected .9 percent and .8 percent in September. Separately, the first reading of the euro zone GDP results showed that the economy grew by 0.2% in the third quarter, in line with the consensus estimate. This, in turn, is seen as a key factor in the relative performance of the common currency against its British counterpart, supporting the EUR/GBP divergence. Despite this, the bold tone adopted by the European Central Bank last week continues to act as a headwind for the euro due to the deteriorating economic outlook. The British pound, on the other hand, is supported by the latest optimism regarding the appointment of Rishi Sunak as the new British Prime Minister. Market participants see Sunak as someone who can restore stability after the market’s recent volatility. In addition, Kristalina Georgieva, managing director of the International Monetary Fund (IMF), told Reuters that she expects the new British Prime Minister Sunak to lead Britain to medium-term sustainability. In addition, expectations of a 75-bps hike from the Bank of England provide caution for aggressive bullish traders and position the EUR/GBP conflict for further intensification. Thus, any subsequent strength is more likely to face stiff resistance and remain near the mid-0.8600s as a boundary, which should be a key point for intraday traders. Some further buying should take spot prices back above 0.8700 and allow the bulls to aim back to retest the 0.8750-0.8760 offer zone.