EURGBP trading higher at 0.8598 just above the five-month lows and in tight trading range as the unemployment data failed to impress traders; the UK ILO Unemployment Rate (3M) came in at 3.8% below consensus of 3.9% in September. The Claimant Count Change came in at 33K, topping forecasts of 21.3K in October. Average Earnings Excluding Bonus (3Mo/Yr) came in at 3.6%, below forecasts of 3.8% in September while the Average Earnings Including Bonus (3Mo/Yr) came in at 3.6% below forecasts of 3.8.
EURGBP hovers close to five-month lows as the short term momentum is negative after the pair breached below the critical 200-day moving average. On the downside, first support stands at 0.8573 the daily low and then 0.8489 the low from May 5th. Traders holding short positions might sit comfortably as long as the pair trades below 0.8650.
On the flip side, first resistance stands at 0.8604 and then at 08749 the high from October 15th which guards the 50-day moving average at 0.8773. Traders looking to buy the pair, an entry point might be when the EURGBP breaks convincingly above the 50-day moving average.More content