EUR/GBP struggling for direction, capped below 0.8600 handle

The EUR/GBP cross traded with mild negative bias but remained confined within a narrow trading band below 0.8600 handle. 

Currently trading around 0.8590-85 band, today's labor market report from UK failed to provide any impetus and the cross shrugged-off a surprise drop in unemployment rate, which got negated by unexpected jump in the number of people claiming unemployment-related benefits during October and flat average earnings. 

Meanwhile, an empty Euro-zone economic docket also provided little incentive for the traders and the cross extended its consolidation phase near around eight-week lows. 

With UK jobs data out of the way, focus now shifts to Thursday's key releases of UK monthly retail sales data and the final Euro-zone CPI print for the month of October, which would help investors determine the next leg of directional move for the cross.  

Technical levels to watch

Weakness below 0.8580 immediate support is likely to get extended initially towards 0.8550 intermediate support before the cross eventually drops to 0.8500 psychological mark. On the upside, recovery momentum above 0.8620-25 (session peak) might trigger a short-covering bounce and assist the cross to surpass 0.8700 handle and aim towards testing 50-day SMA resistance near 0.8755-60 region.