EUR/GBP – flat lined above 0.85

EUR/GBP clocked a two-week high of 0.8535 on Tuesday and trades in the sideways manner just above 0.85 handle ahead of the UK labor and wage growth data release.

Trades below 23.6% Fibo

At the time of writing, the cross trades below 0.8508, which is the 23.6% Fibo retracement of the rally – 0.8420-0.8535 - seen on Tuesday. British Pound came under pressure yesterday after the August CPI numbers missed estimates.

Focus today is on the UK wage growth and labor data release. The risk arising out of a disappointing numbers is huge as it would pour cold water over optimism that UK economy is holding up well despite Brexit.

EUR/GBP Technical Levels

Acceptance above 0.8508 (23.6% of 0.8420-0.8535) would open doors for 0.8520 (Asian session high). A violation there could yield 0.8535 (yesterday’s high). On the lower side, breach of support at 0.8491 (38.2% of 0.8420-0.8535) could yield a test of 0.8484 (Sep 12 high) – 0.84 (zero figure) levels.