EUR/GBP robust despite UK jobs, but 0.8710 is tough resistance ahead

EUR/GBP is currently trading at 0.8658 with a high of 0.8673 and a low of 0.8628.

EUR/GBP is bid despite the UK claimant count beating expectations nor there being a Brexit related fall-out elsewhere within the UK jobs data. However,  James Knightley suggested that the improvement in wages and jobs are unlikely to last. "The UK labour market data for the three months to June looks good, but we doubt that this will remain the case given the deterioration in business surveys following the Brexit vote."

"EUR/GBP made a minor new high yesterday, however with a divergence of the weekly RSI and the 13 count on the daily chart and a TD perfected set up on the daily chart we are looking for failure," explained analysts at Commerzbank. "The market has already reached the 61.8% retracement at .8710 of the move down from the 2008 peak and we suspect that we will see some consolidation here. The market stays immediately bid while above the 0.8402 near term support line."

How volatile has EUR/GBP been?

On the hourly EUR/GBP chart, ATR (14) is presently at 19 pips, while 2-Standard Deviation Volatility Bandwidth is shrinking and currently 35 pips.
On a daily chart, 2-Standard Deviation Volatility Bandwidth is expanding at 439 pips. Over the past four weeks, 19 pips has been the average movement for the current session. Following the four week period average, today’s most volatile hour was between 8:00-9:00 GMT which has an average movement of 32 pips.

What price levels and patterns have to be considered?

With spot trading at 0.8659, we can see next resistance ahead at 0.8671 (Daily Classic PP), 0.8676 (Daily High), 0.8683 (YTD High), 0.8683 (Monthly High) and 0.8683 (Weekly High). Support below can be found at 0.8658 (Hourly 20 EMA), 0.8645 (Daily Open), 0.8644 (Hourly 100 SMA), 0.8641 (Yesterday's Low) and 0.8628 (Daily Low).