EUR/GBP retreats sharply from yearly tops, UK jobs and EZ GDP in focus

The EUR/GBP cross built on previous session's strong up-move and jumped to fresh yearly tops during the early European session, albeit quickly retreated around 30-pips from highs. 

The cross extended its recent bullish trajectory and the latest leg of up-move over the past 24-hours was driven by weaker sentiment surrounding the British Pound, led by Tuesday's softer UK CPI print. 

The latest UK inflation figures further reduced chances of an early BoE rate hike action and had been one of the key factors contributing to the pair's up-move to the highest level since Oct. 2016.

However, the latest news headlines that the ECB President Mario Draghi will not be delivering any fresh policy message at Jackson Hole was seen weighing heavily on the shared currency and has failed to assist the cross to build on early up-move. 

   •  RTRS Sources: ECB's Draghi will not deliver fresh policy message at Jackson Hole

Next in focus would be the release of UK labor market report, which would be looked upon for some immediate respite for the GBP bulls. This would be followed by the release of flash Euro-zone GDP print. 

   •  UK: Unemployment rate to hold steady at 4.5% in June - TDS

Technical levels to watch

A follow through buying interest now seems to pave way for continuation of the pair's upward trajectory initially towards the 0.9200 handle and eventually towards Oct. 2016 swing high resistance near the 0.9260-65 region. 

On the flip side, a follow through weakness below the 0.9100 handle is likely to accelerate the corrective slide back towards mid-0.9000s en-route the key 0.90 psychological mark.