EUR/GBP hit session low after UK data

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 16, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    British Pound cheered upbeat labor market and wage data, pushing EUR/GBP into the red to a daily low of 0.7843 levels.

    Rejected at 0.7872

    The cross began trimming gains from a high of 0.7872 levels ahead of the data release as investors were anticipating an improvement in the labor market. Pair fell into losses after data revealed unemployment rate remained at a decade low, while wage growth bettered estimates by printing at 2.2% (excl. bonus) and 2.1% (incl. bonus).

    However, gains in Sterling were capped by renewed Brexit fears. Consequently, the cross recovered from the post data low of 0.7843 to 0.7857 levels.

    EUR/GBP Technical Levels

    The immediate hurdle is seen at 0.7871 (daily high), which if taken out shall expose resistance at 0.7897 (Feb 11 high). On the other hand, a breakdown of immediate support at 0.7845 (Feb 17 low) could see prices drift lower to 0.7808 (5-DMA).
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