EUR/GBP subdued trading action around 0.7930

Price-action around the EUR/GBP cross has remained muted as both the shared currency and the British Pound have been moving cautiously higher ahead of the Fed decision.

Earlier during European session the pair dipped below 0.7900 after some upbeat UK employment report, particularly strong Average Earnings growth of 2.0%. The pair, however, quickly recovered from session through level and remained sidelined around 0.7920 level as investors remain worried about the potential 'Brexit' and its implication on the UK economy. 

Investors will now await for fresh impetus from the outcome of the Fed's two day meeting, later during NY session, ahead of the BoE monetary policy decision announcement on Thursday.

Technical levels to watch

From technical perspective, the pair needs to either sustain its strength above 0.7950 or decisively break below 0.7900 in order to confirm its near-term direction. On a sustained move above 0.7950, the pair seems all set to make fresh attempt to conquer 0.8000 handle and head towards testing its next major resistance near 0.8090-95 area. Alternatively, a convincing break below 0.7900 handle should drag the pair immediately towards 0.7850 before the pair drops further towards testing 100-day SMA strong support near 0.7800 region.