FXStreet (Mumbai) - The pound was battered by the shared currency in the European morning, pushing EUR/GBP to fresh 5-month peaks above 0.7470, after the UK CPI figures revealed that the UK economy returned to deflation last month. EUR/GBP eases-off fresh highs Currently, the EUR/GBP pair rises 0.75% to 0.7456, quickly reversing a spike to a new five-month high scored at 0.7472. After the spiking to daily highs in a knee-jerk reaction to the poor UK data, the EUR/GBP cross deflates to the mid-point of the 0.74 handle as the euro trimmed gains versus the US dollar and fell back below 1.14 barrier in anticipation of a sharp decline in the German business sentiment. The pair rose nearly 50 pips higher in response to the weak UK inflation report which showed that the consumer prices in the UK reverted to the negative territory, declining -0.1% y/y in Sept versus a flat reading seen in August. Later in the day, the cross will be influenced by the sentiment on European stocks as well as the crucial German ZEW figures. EUR/GBP Technical Levels To the upside, the next resistance is located at 0.7472 (Today’s High), above which it could extend gains to 0.7500 (psychological levels). To the downside immediate support might be located at 0.7412 (50-SMA, 20-SMA confluence on H1) below that at 0.7394 (10-DMA). For more information, read our latest forex news.