EUR/GBP Price Analysis: Defies Wednesday’s ‘hanging man’ ahead of UK jobs, ECB

  • EUR/GBP stays on the bids after extending pullback from 0.9043.
  • UK employment statistics favor GBP strength, ECB to become the market mover.
  • Bearish candlestick formation, nearness short-term resistance line keep sellers hopeful.
  • Bulls can aim for June month’s top, 50-day SMA offers strong downside support.

EUR/GBP remains firm around 0.9084, up 0.20% on a day, amid the early Thursday’s trading session. The pair flashed a bearish candlestick pattern on the daily chart the previous day which can play a role if the scheduled key data/events disappoint the bulls.

Other than the sustained trading beyond Wednesday’s “hanging man” candlestick, buyers will also seek a successful break above the 13-day-old falling trend line, at 0.9102 now, for fresh entries.

In doing so, 0.9145 and the last month’s peak close to 0.9175 could entertain the buyers ahead of highlighting the 0.9200 mark.

Meanwhile, the sellers will look for a clear downside past-July 06 top close to 0.9065 to renew hopes of meeting 0.9000 threshold. It should also be noted that a 50-day SMA level of 0.8970 adds to the downside support for the pair.

Talking about the data/events, UK’s headlines Claimant Count Change for June may recede from 528.9K to 250K but the Unemployment Rate for the three months to May is expected to rise by 4.2% versus 3.9% prior. Additionally, the European Central Bank (ECB) isn’t likely to alter the present monetary policy but talks about further stimulus will be the key to follow during the ECB President and Vice President’s press conference around 12:30 GMT.

EUR/GBP daily chart

Trend: Pullback expected

 

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