EUR/GBP testing lows near 0.8640, UK data eyed

A softer tone in both the shared currency and the British pound has dragged EUR/GBP to test the lower bound of the range in the 0.8640/30 band.

EUR/GBP attention to UK jobs

The European cross has slipped back below the 0.8700 handle after reaching fresh highs in the vicinity of 0.8730 on Tuesday, levels last seen in July 2013, following a generalized selling bias in the risk-associated universe today.

Furthermore, GBP will remain under pressure later in the session in light of the labour market report in the UK economy. Prior surveys see the jobless rate at 4.9% in the three months ended in June, while the Claimant Count Change is expected to have increased by 9.5K during last month.

EUR/GBP key levels

The cross is now losing 0.05% at 0.8641 facing the initial support at 0.8486 (20-day sma) followed by 0.8259 (55-day sma) and finally 0.8248 (low Jul.14). On the other hand, a break above 0.8727 (2016 high Aug.16) would expose 0.8778 (high Jul.31 2013) and then 0.8794 (high Mar.12 2013).