EUR/GBP hovering around 0.8500, eyeing UK jobs data for fresh impetus

The EUR/GBP cross traded in narrow band around 0.8500 handle, digesting Tuesday's strong gains and awaiting for fresh impetus from today's release of UK jobs data for the month of August. 

Tuesday's release of UK CPI print for August helped the cross to rebound from 50-day SMA and break through a three-day old trading range. The cross subsequently jumped to a 2-week high and reclaimed 0.8500 psychological mark amid renewed across the board selling pressure surrounding the British Pound. 

Investors now turn their attention to UK labor market details and industrial production data from Euro-zone. Consensus estimates the number of people claiming unemployment-related benefits in the UK to have risen by 1.6K during August, while Euro-zone industrial production is expected to have contracted during the month of July.

Technical levels to watch

From current levels 0.8530 remains immediate hurdle, which if cleared has the potential to continue boosting the pair initially towards 0.8555-60 intermediate resistance and eventually towards its next major resistance near 0.8600 handle.

Meanwhile on the downside, 0.8470-65 zone is likely to protect immediate downside. Failure to hold this immediate support might now force the pair to erase all of its Tuesday's gains and head back towards retesting 50-day SMA support near 0.9620-15 region.