The pair hit a low of 0.8724 on the day after the report was out
The key to the report here was higher wage growth. The figure was the highest since 2016, and it gives reason to believe that the strain faced by UK consumers on "high inflation-low wage growth" is slowly coming to an end.
Anyway, sterling caught a bid and that sent EUR/GBP almost 25 pips lower from where it was before.
The momentum of the pair is clear, as mentioned earlier in the week here. The downside movement has been a strong one as there was only one higher daily close in the last ten trading days. Today's lower close would make it ten out of eleven trading days the pair closes lower.
The next level to watch out for is the 61.8 retracement level on the daily chart. It is a level that has stopped the decline in December and January. That will be the key support level to hold, if the pair is to see a return higher.
Otherwise, a break there opens up a move towards 0.8400 - and will end the consolidation phase from September last year.
