Wednesday, 21 February 2018

EUR/GBP Uplifted on mixed UK jobs data



EUR/GBP dropped sharply yesterday but found support few pips above the key level 0.8800, also 50 %  Fibonacci retracemet of latest January to February bullish run. Mixed UK jobs data today triggered initial weakness of the Sterling and the pair bounced to reach daily high at 0.8855.  
The UK's unemployment rate unexpectedly rose (4.4% from 4.3%) during the three-months in 2017 , despite the jobless claims for January dropped. With PM May on the wires and BoE’s inflation ahead, the Sterling is set on huge pressure.
Currently the pair is trading at 0.8843 and as seen on the four hour time frame is going to cross to above its bearish 20-day SMA. Stochastic and RSI retreated from there oversold readings and both are showing strong bullish momentum.
 
The recovery from the last hours can not confirm resumption of the short term bullish outlook  as yet EUR/GBP faces difficulties around 0.8855. In case the pair conquer this barrier, next challenge will be 0.8880 and finally the psychological 0.89 handle.  The downside is protected by the 50% Fibo at 0.8800 and bears are strictly guarded while staying above that level.





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