FxWirePro: UK unemployment claims boosting up EUR/GBP attempts of price recovery; trade with credit spreads

The current unemployment claims is printed at 5.6% which is in line with the forecasts and unchanged from previous flash. The number of people claiming unemployment benefits in the U.K. declined unexpectedly in July, while the country's jobless rate held steady near six-year lows, official data showed on Wednesday. While UK gilts received an additional boost and the GBP slid further following Thursday's generally dovish BoE's policy meeting and weak economic data.

Bearish spinning top is not confirmed by volumes on daily charts while healthy accumulation of volumes is observed along with rising prices.

RSI indicates buy signal as strength index is converging with rising prices, (Currently, 14 day RSI trending at 58.7352 levels).

Stochastic signifies prevailing uptrend is still intact as %K crossover is maintained below overbought level.

Since short term uptrend is anticipated we like to extract the leverage benefits from buying 15D (1%) Out-Of-The-Money call while shorting 7D (-1%) In-The-Money call for a net credit. This spread strategy may result in a loss if EURGBP declines at expiration. Maximum loss cannot be more than the initial debit taken to enter the spread position.