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    EUR/GBP dips to 0.7920 ahead of UK employment details Haresh Menghani

    After repeated failed attempts, on Monday and on Tuesday, to head back towards 0.8000 psychological mark, the EUR/GBP cross on Wednesday dropped to 0.7910 before retracing few pips to currently trade around 0.7920-25 region.Ahead of the scheduled release of the UK labor market report, during the European session, the British Pound is finding some buying interest and is contributing towards sterling's relative outperformance against the shared currency. UK jobs report for the month of May is expected to show Claimant Count decreasing by 0.1k and unemployment rate holding steady at 7.1%. What would be of key interest for the markets is Average Earnings Index for April, which is expected to show a slower pace of 1.7% growth as compared to 2.0% growth recorded in March. Investors, however, remain worried about the 'Brexit' situation and any polls indicating lead for the 'remain' group should trigger a bullish spike for the British Pound, eventually dragging the EUR/GBP cross sharply lower. Meanwhile, the cross will also look forward to BoE monetary policy decision on Thursday.Technical levels to watchExtension of the weakening trend below 0.7900 could fuel intraday bearish bias and drag the pair immediately towards 0.7850 horizontal support before heading towards 100-day SMA support around 0.7800 handle. Meanwhile on the upside, 0.7950 now seems to have emerged as immediate resistance, which if conquered decisively should now assist the pair to easily scale through 0.8000 handle and head towards April daily closing highs resistance near 0.8090-95 region.


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