FxWirePro: EUR/GBP spikes over 0.90%, hits 11-month high after not-so-impressive UK jobs report

Chart - Courtesy Trading View 

EUR/GBP was trading 0.93% higher on the day at 0.8653 at around 12:15 GMT.

The pair has broken above 110-week EMA to hit 11-month high, outlook still bullish.

The British pound remains depressed after a not-so-impressive UK jobs report and growing fears surrounding the UK’s economic hardships.

Doubts over the Bank of England’s (BOE) capacity to avoid recession and tame the inflation woes also exert downside pressure on pound.

Data released earlier on Tuesday showed UK’s Claimant Count Change improved to -19.7K from -49.4K expected and -65.5K prior while the Unemployment Rate also rose past 3.6% expected to 3.8%.

Technical bias for the pair is bullish. GMMA indicator shows major and minor trend are bullish.

Volatility is high and rising, momentum is with the bulls. MACD and ADX support gains. 'Golden Cross' on the daily charts supports gains. 

Support levels - 0.8585 (110-week EMA), 0.8544 (200H MA)

Resistance levels - 0.87, 0.8721 (200-week MA)

Summary: EUR/GBP trades with a bullish bias. The pair had been capped at 110-week EMA from the past few weeks. Break above raises scope for further gains.