Wednesday, November 11, 2015

EUR/GBP rises to 0.71 as UK wage data disappoints

FXStreet (Mumbai) - Sterling was hit with fresh offers, leading to a rise in the EUR/GBP cross to a high of 0.71 after the data in the UK showed the wage growth slowed more than expected.

Eyes hourly 50-MA

The cross is fast approaching its hourly 50-MA located at 0.7105. Sterling took a hit after the data showed the growth in the average earnings excluding and including bonus slowed more than expected in the three months to September.

Still, the pace of decline in Sterling is somewhat controlled by the fact that the jobless rate dropped to 5.3%. The pair could maintain its gains ahead in the day as the GBP could underperform EUR against the USD for the rest of the day.

EUR/GBP Technical Levels

The immediate resistance is seen at 0.7105 (hourly 50-MA), above which the pair could rise to 0.7120 (hourly 200-MA). A break above the same would expose 0.7145 (61.8% of 0.6931-0.7493). On the other side, support is seen at 0.7077 (daily low), under which the losses could be extended to 0.7042 (Nov 5 low).
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