EUR/GBP advances beyond 0.7800 ahead of UK labour market data, extending gains after solid performance of the shared currency overnight.
- Offered tone in the sterling extends higher ahead of the upcoming UK labour market data.
- Expectations are for the Claimant Count Change decreasing by 1.4K during January, while the jobless rate is expected to tick lower to 5.0% from 5.1% in the previous month.
- The risk-off trade seems to be back to the global markets at the end of the Asian session pushing higher the demand for EUR.
- Technicals indicate further upside, moving averages are biased higher, and so is the momentum as indicated by daily Stochs.
- 5-DMA at 0.7782 is immediate support on the downside, while 0.7850 (Feb 9th highs) is immediate resistance on the upside.
Recommendation: Buy dips around 0.7820, SL: 0.7780, TP: 0.7850/0.79
