EUR/GBP erases Tuesday’s gains, off session low at 0.8365

The British Pound continues to attract buying interest, with the EUR/GBP pair now erasing all of its Tuesday's gains to currently trade around 0.8365 region.

Having faced rejection at 0.8400 handle, the pair dipped to session low level of 0.8340 immediately after the release of impressive UK jobs report that trigger a near-term short-covering rally across GBP pairs. 

A steady wage growth justifies yesterday's up-tick in CPI print and further improves outlook for inflation in the near-term and might thus restrain BOE from easing during its meeting in August. 

However, given the uncertainty over the economic implication of last month’s historic Brexit referendum, the central bank could still go ahead and ease its monetary policy, which might limit immediate downside for the EUR/GBP cross.

Meanwhile, the EUR/GBP cross has shown some resilience to weaken further and has managed to find some buying interest at lower levels as trader might be reluctant to take directional bets ahead of Thursday's ECB monetary policy meeting. 

Technical levels to watch

On the immediate downside, bulls would be eyeing to defend 0.8300 handle, below which the pair could drift back to recent swing lows support near 0.8250 level. Meanwhile on the upside, momentum above 0.8400 level, and a subsequent strength above 0.8435-40 resistance, now seems to pave way for resumption of the pair's prior near-term bullish trend.