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EUR/GBP 4H Chart 8/15/2012 7:06AM EDT

The EUR/GBP is showing heavy price action in the 8/15 European session. After failing to reach back to this week’s high at 0.7884, the pair fell sharply to the week’s low at 0.7826. The RSI reading held below 60 after kissing 30, reflecting development of bearish momentum. If the market can hold under 0.7850, and push below 0.7826 during the 8/15 US session, it is likely in a bearish continuation that exposes at least the 0.7755 July and 2012 low.

A fall in EUR/GBP is usually eur-centric, though this push could be attributed to the better than expected jobs data from the UK over the 8/15 session. Claimant count was reduced 5.9K instead of the forecast of 6.2K additional claims. The previous reading of 6.1K was revised down to 1.0K. Finally the unemployment rate dropped from 8.1% to 8.0%.

The GBP/USD also saw a positive reaction after the jobs data was released, rallying from1.5660 to 1.57 before stalling.

Fan Yang CMT is a forex trader, analyst, educator and Chief Technical Strategist for FXTimes – provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.

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