FxWirePro: EUR/GBP breaks above 110-EMA resistance, pound unimpressed by upbeat UK jobs data

Chart - Courtesy Trading View 

EUR/GBP was trading 0.36% higher on the day at 0.8444 at around 08:45 GMT, outlook is bullish.

The British pound remains unimpressed by upbeat UK ILO employment data, remains depressed amid Russia-Ukraine war escalation after news of China’s aid to Moscow.

Data published by the Office for National Statistics (ONS) on Tuesday showed UK’s official jobless rate arrived at 3.9% in January vs. the previous 4.1% and 4.0% expected.

The claimant count change showed a bigger than previous drop last month. Number of people claiming jobless benefits fell by 48.1K in February from-31.9K booked previously. The claimant count rate came in at 4.4% last month vs. 4.6% prior.

The UK’s average weekly earnings, excluding bonuses, arrived at 3.8% 3Mo/YoY in January versus +3.7% last and +3.7% expected. The gauge including bonuses came in at 4.8% 3Mo/YoY in January versus +4.3% previous and +4.6% expected.

Technical bias for the pair is turning bullish. Price action is on verge of break above the daily cloud. Chikou span is biased higher, supporting upside in the pair.

Momentum is bullish, Stochs and RSI are sharply higher. Volatility is high and rising. MACD supports upside in the pair.

Support levels - 0.8415 (110-EMA), 0.8401 (5-DMA), 0.8375 (55-EMA)

Resistance levels - 0.8441 (Cloud top), 0.8477 (200-DMA), 0.8510 (Channel top)

Summary: EUR/GBP finds stiff resistance at 110-EMA. Technical bias is bullish. However, break above required for upside continuation.