EUR/GBP corrects from fresh yearly tops, down to 0.8910 post UK jobs data

The EUR/GBP cross extended its profit taking slide from fresh yearly tops near mid-0.8900 and has now dropped to session lows post UK jobs data.

The cross ran through some fresh offers after slightly better-than-expected UK employment details. According to the data released just a while ago, the number of people claiming unemployment-related benefits rose by 6K during the month of June, bettering expectations of 10K and also lowers than previous month's 7.5K. 

Adding to this, the unemployment rate ticked lower to 4.5% through 3-months to May and weekly earnings excluding bonus recorded a better-than-expected growth of 2.00% for the reported period. Earnings including bonuses were mostly in line with consensus estimates of 1.8%, down from 2.1% previous.

   •  UK jobs solid: Claimants count change, jobless rate beat expectations

Against the backdrop of last week's slew of UK data disappointment, today's upbeat UK labor market report provided a much-needed respite for the British Pound and prompted some profit-taking move following the pair's latest up-move of nearly 200-pips in just five trading sessions. 

Meanwhile, a mildly softer tone surrounding the shared currency, with the EUR/USD major witnessing a sharp reversal from multi-month tops, further collaborated to the pair's retracement to 0.8910 region during the early European session. 

Technical levels to watch

A follow through retracement below the 0.8900 handle, the cross is likely to extend the corrective slide towards 0.8845 horizontal zone en-route 0.8815-10 support. On the upside, momentum back above 0.8925 level could lift the cross back towards eight month tops resistance near mid-0.8900s before darting towards the key 0.90 psychological mark.