EUR/GBP retakes 0.8500 ahead of UK jobs report

After a brief test of the 0.8480 area on Tuesday, EUR/GBP seems to have found dip buyers and is now looking to extend the bounce further north of the 0.8500 handle.

EUR/GBP now looks to UK data

Today’s so far steady tone in the British Pound is motivating the European cross to regain some ground after two consecutive retracements, including yesterday’s multi-day lows in the 0.8485/80 band.

In the meantime, the cross is attempting to consolidate the drop from highs near 0.8800 the figure seen in mid-March against the backdrop of rising risk-off trade due to arising geopolitical concerns in Asia and the Middle East.

In the data space, UK’s labour market figures are due later. Prior surveys expect the jobless rate to remain at 4.7% in February, while the Claimant Change is seen decreasing marginally in March (-3K exp.).

EUR/GBP key levels

The cross is now gaining 0.09% at 0.8498 and a breakout of 0.8556 (high Apr.6) would expose 0.8581 (55-day sma) and then 0.8593 (200-day sma). On the flip side, the next support is located at 0.8482 (low Apr.11) seconded by 0.8480 (low Mar.31) and finally 0.8417 (low Feb.23).