FxWirePro: EUR/GBP Daily Outlook

Chart - Courtesy Trading View 

EUR/GBP was trading 0.21% higher on the day at 0.8796 at around 10:50 GMT.

The pair is extending sideways at daily cloud base, decisive break above required for upside continuation.

Mixed UK employment figures released earlier on Tuesday reaffirm further BoE rate hikes and underpin the British Pound, keeping upside limited.

Data released by the UK Office for National Statistics showed the jobless rate unexpectedly ticked higher to 3.6% during the three months to September from 3.5% previous. 

Further, the number of people claiming unemployment-related benefits came in at 3.3K against consensus estimates pointing to a fall of 12.6K.

Average Earnings Excluding Bonuses, however, rose to 5.7% from 5.5%, beating estimates for an uptick to 5.6%. 

On the other side, talks for a more aggressive policy tightening by the European Central Bank (ECB), offers support to the Euro, keeping scope for upside.

The German ZEW headline numbers for October showed that the Economic Sentiment Index rose to -36.7 in November from -59.2 in October, beating the market expectation of -50 by a wide margin. 

The Current Situation Index rose to -64.5 from -72.2, also beating analysts' estimate of -68.4. The ZEW Economic Sentiment Index for the Eurozone edged higher to -38.7 from -59.7.

Technical bias is bullish. Watch out for decisive break above daily cloud for further gains.