EUR/GBP recovers sharply to 0.9030 post-UK jobs report

The EUR/GBP cross reversed an early dip to sub-0.90 level, back closer to over 1-month and touched a session high level of 0.9030 on mixed UK jobs data.

The cross caught some fresh bids and spiked nearly 50-pips on disappointing wage growth data from the latest UK labor market report. Average earnings including bonus matched previous month's reading but was below consensus estimates and triggered a modest retracement across GBP crosses.

Other details revealed that unemployment rate dropped fresh record low level of 4.3% in July, while the number of people claiming unemployment-related benefits unexpectedly dropped by 2.8K in August. 

With wage growth still lagging behind inflation, the BoE seems more likely to maintain its cautious tone on Thursday when it announces its latest monetary policy decision.

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Meanwhile, a modest uptick in the EUR/USD major was also seen lending some support and collaborating to the pair's modest recovery from the lowest level since early August. 

Technical levels to watch

On a sustained move beyond 0.9035 level, the recovery move is likely to get extended towards 0.9070 hurdle before the cross eventually darts towards reclaiming the 0.9100 handle.

On the flip side, weakness back below the key 0.90 psychological mark, leading to a subsequent break below 0.8985-80 support, would turn the cross vulnerable to extend its near-term corrective slide towards 0.8935 horizontal support en-route the 0.8900 handle.