Wednesday, September 16, 2015

EUR/GBP testing major hurdle at 0.7360

FXStreet (Mumbai) - The cross in the EUR/GBP extends gains for the second straight session on Wednesday, mainly driven by stronger euro versus the greenback while the pound remains cautious ahead of the UK jobs report.

EUR/GBP awaits economic data

Currently, the EUR/GBP pair rises 0.16% to 0.7354, hovering close to fresh session highs posted at 0.7359. The EUR/GBP cross remains elevated in the early European trades, gathering pace to finally surpass the key upside barrier placed at 0.7360 levels. The last has acted as a strong resistance for the past 11 trading sessions or so.

Whilst, the euro remains better bid against the British currency as the GBP buyers fail to benefit from the expectations of a stronger UK labour market report.

The UK labor market are expected to show the jobless rate remained at 5.6% in the quarter to July, while jobless claims are expected to have declined by 5,000 people between July and August, significantly down from a two-year average of 27,300.

Moreover, Euro zone CPI data will also provide further incentives on the EUR/GBP cross later today. Consumer prices in the euro zone are seen flat in August, on a monthly basis, compared to a negative 0.6% result in July.

EUR/GBP Technical Levels

To the upside, the next resistance is located at 0.7375 (Sept 3 High) levels and above which it could extend gains to 0.7400 levels. To the downside immediate support might be located at 0.7292 (Sept 11 Low) below that at 0.7243 (Aug 31 Low).
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