EUR/GBP deflates to 0.8485 after UK jobs data

Following the release of UK employment details, the EUR/GBP cross turned lower and drifted further below 0.8500 handle to currently trade at a fresh session low around 0.8485 level. 

According to the data released by UK Office for National Statistics, the number of people claiming jobless benefits during August increased to 2.4K as compared to an expected rise 1.6K. The British Pound, however, gained traction as better-than-expected rise in average earnings, showing a growth of 2.3% 3m/y, negated higher-than-expected jump in claimant count change. 

Focus now shifts to industrial production data from Euro-zone, which is expected to show contraction of 0.9% in July as compared to 0.6% growth recorded in June. 

Technical levels to watch

Immediate downside support is pegged near 0.8470-65 zone below which the pair is likely to drift back towards retesting 50-day SMA support near 0.8620-15 region. On the upside, momentum above 0.8500 handle might continue to confront strong resistance near 0.8530 region, which if cleared is likely to help the pair further towards 0.8555-60 resistance before eventually heading towards reclaiming 0.8600 handle.