EUR/GBP stages a minor recovery ahead of UK jobs data and EZ CPI
|The EUR/GBP cross staged a minor recovery on Wednesday and reversed part of yesterday's slump of nearly 200-pips from levels beyond 0.8800 handle.
Currently trading around 0.8675 region, testing session peak, the cross on Tuesday came under intense selling pressure in wake of UK PM Theresa May's speech on Brexit, where she pledged to deliver a 'clean Brexit' and confirmed to put the final Brexit plan for a vote in both Houses of Parliament. May's much anticipated Brexit speech triggered a powerful rally in the British Pound and dragged the cross to a 6-day low near 0.8625 region.
Investors on Wednesday were prompted to cover some of their short-positions ahead of some key macro releases from the UK and Euro-zone. Data scheduled for release on Wednesday include - UK jobs report and the final composite Euro-zone CPI print for the month of December.
Technical levels to watch
From current levels, the recovery momentum is likely to confront resistance near 0.8700 round figure mark, which if cleared has the potential to lift the cross back towards 0.8750-55 horizontal resistance. On the downside, 0.8625 area now seems to have emerged as immediate support, which if broken is likely to accelerate the slide even below 0.8600 handle back towards 50-day SMA support near 0.8540 region.
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