FxWirePro: EUR/GBP grinds lower to fresh 11-month lows, upside capped at 5-DMA

EUR/GBP chart - Trading View 

Technical Analysis: Bias Bearish

EUR/GBP was trading 0.21% lower on the day at 0.8624 at around 10:15 GMT, outlook strongly bearish.

The pair is extending bearish streak for the 5th straight month and has hit fresh 11-month lows at 0.8620, further downside likely.

Data released by the Office for National Statistics (ONS) earlier on Tuesday showed that UK unemployment rate edged higher to 5.1% in Dec from 5.0% previous, in line with expectations.

Further, details of the report showed UK wages rose by 4.7% in December and January's jobless claims fell by 20,000, both better than expected.

UK Prime Minister Boris Johnson on Monday unveiled a new four-step plan to end restrictions by 21 June and lifted hopes for a swift UK economic recovery.

Upbeat UK jobs data and hopes for swift economic recovery keep the British pound buoyed, weighing down on the pair higher. 

Technical studies are also strongly bearish. Oscillators are at oversold levels which might cause some pullbacks. But no major signs of weakness seen.

5-DMA caps upside at 0.8648. The pair is on track to test 76.8% Fib at 0.8560. Retrace above 200W MA will negate any further weakness.