EUR/GBP sits at 4-week tops ahead of UK jobs data

Haresh Menghani FXStreet

• Jumps to the highest level since Oct. 20.
• UK wage growth data to provide fresh impetus.

The EUR/GBP cross was seen digesting overnight strong gains and oscillated in a narrow trading band near 4-week tops touched earlier.

The pair’s post-ECB recovery move got an additional boost from Tuesday's upbeat German GDP print and took along stops placed near the 0.8920-25 region.

The bullish momentum extended for the third consecutive session on Wednesday, with the cross touching its highest level since October 20.

The cross now seems to have entered a bullish consolidation phase as investors now look forward to the UK employment figures for some fresh impetus.

• UK unemployment rate to stay at 4.3% - Danske Bank

With UK inflation showing initial signs of peaking, UK earnings growth data will gather plenty of market attention and might turn out be a key determinant of the pair's next leg of directional move.

• UK: Wage growth to move back into positive territory in early 2018 - Nomura

Technical levels to watch

A follow-through buying interest has the potential to continue lifting the cross towards the key 0.90 psychological mark ahead of 0.9025-35 resistance. On the flip side, any profit-taking slide might now find immediate support near mid-0.8900s, which is closely followed by support near the 0.8925-20 region.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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