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EUR/GBP fades a spike to 0.7470, reverts to 0.7440

FXStreet (Mumbai) - The EUR/GBP cross failed at higher levels and reverted to session lows after the pound witnessed wild swings following the release of UJ jobs report.

EUR/GBP hovers below 0.7450 levels

Currently, the EUR/GBP pair trades -0.21% to 0.7447, quickly retracing from 0.7470 levels reached on the data release. The EUR/GBP cross reverses the knee-jerk spike near 0.7470 region and return to the familiar range, as the UK jobs data failed to impress the GBP bulls.

The unemployment rate slid to 5.4% in the quarter to August, the lowest since the spring of 2008, while wages excluding bonuses ticked lower to 2.8% against expectations of a 3% rise. Wages with bonus were higher at 3%, but just below 3.1% market expectations.

Meanwhile, the EUR/USD pair clinches gains above 1.14 amid renewed bout of USD selling as markets prefer safe-haven in times of risk-aversion.

EUR/GBP Technical Levels

To the upside, the next resistance is located at 0.7496/0.7500 (Oct 13 High & psychological barrier), above which it could extend gains to 0.7556 (daily R2) and further towards 0.7616 (daily R3). To the downside immediate support might be located at 0.7440/31 (Today’s Low & 5-DMA) below that at 0.7404/1 (daily S1 & 10-DMA) and from there to 0.7385 (20-DMA).

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