- – The Euro after trading as high as 0.8851 against the British Pound faced strong offers.
- – The EUR/GBP pair moved down, broke the 0.8750 support and a bullish trend line on the 4-hour chart.
- – Earlier today, the UK Claimant Count Change reported by the National Statistics posted a change of -10.1 in Dec 2016, better than the forecast of +5K.
UK Employment Report
Today, the UK saw the release of the employment figures by the National Statistics. The expectation was a chance of 5K in the Claimant Count Change in Dec 2016, and the unemployment rate was forecasted to remain at 4.8%.
However, the result was better than the forecast, as the change was -10.1K in Dec 2016, and the unemployment rate remained at 4.8%. The report added that “There were 31.80 million people in work, little changed compared with June to August 2016 but 294,000 more than for a year earlier. There were 23.25 million people working full-time, 209,000 more than for a year earlier“.
Overall, the result was better than the market forecast, which may help the British Pound in gaining bids. It means the EUR/GBP pair recent break may put further pressure on buyers as long as the pair is below 0.8750.
EUR/GBP Technical Analysis
The Euro gained a lot earlier this week against the British Pound, and traded past the 0.8800 level. However, it faced strong selling interest near 0.8850, which resulted in a sharp downside move recently.
The EUR/GBP pair moved down, and broke a few key support levels. First, there was a close below 0.8800, then there was a break below the 0.8750 support along with a bullish trend line on the 4-hour chart.
There was also a move below the 50% Fib retracement level of the last wave from the 0.8451 low to 0.8851 high. However, the pair just managed to hold the downside near 0.8600, and the 100 simple moving average (H4).
It is currently moving back higher, but most likely to face sellers near the broken support levels like 0.8700 and 0.8750. The highlighted trend line was clearly a major support, and a break below it can be seen as a bearish drift.Tags: British Pound, EURGBP Technical Analysis, Euro, Pound, UK Employment