FxWirePro: EUR/GBP extends weakness below 200-DMA, better-than-expected UK labour market figures lift Sterling

EUR/GBP chart on Trading View used for analysis

• EUR/GBP extends weakness after better-than-expected UK labour market figures.
   
• Monthly report on the UK labour market showed that Claimant Count Change rose by 20.8K in December.
   
• The key Average Earnings including Bonus rose 3.4% in November and the jobless rate ticked lower to 4.0% during the same period.
   
• EUR/GBP is trading 0.18% lower on the day at 0.8798 at 0945 GMT, bias bearish.
   
• Recovery attempts capped at 200-DMA. Scope for test of 0.87 levels. 
   
• The European Central Bank’s policy meeting will be in focus as the euro area economy continues to lose momentum.
   
• Bearish invalidation only on decisive breakout at 200-DMA. 

Support levels - 0.8770 (lower BB), 0.8750 (78.6% Fib), 0.87 (trendline)

Resistance levels - 0.8810 (5-DMA), 0.8862 (200-DMA)

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.