EUR/GBP sees relief rally, jumps above 0.77

EUR/GBP snapped three-day losing streak in Asia to trade above 0.77 handle as the bid tone around Cable weakened somewhat following sharp gains in last two days.

Supported by 38.2% Fibo

The cross found support at 0.7683 (38.2% of Nov low – May high) and jumped to a high of 0.7744 levels. The latest Brexit polls once again showed an overall lead for ‘remain’ group. However, the bid tone around Sterling failed to respond, leaving the GBP/USD pair in moderate losses.

Consequently, EUR/GBP cross witnessed a relief rally. Pair was trading at a high of 0.80 levels last Thursday before the sell-off began. Referendum related news flow remains the focal point for the markets. Apart from that traders would also keep an eye on Zew survey and UK public sector net borrowing data release. Later in the day, Yellen testimony could hog the limelight.

EUR/GBP Technical Levels

As of writing, the cross traded at 0.7730 levels. The immediate hurdle is noted at 0.7750 (June 7 low), which if breached would expose resistance at 0.7824 (100-DMA) and 0.7905 (June 6 high). On the other hand, a breakdown of support at 0.7683 (38.2% of Nov low – May high) would open doors for a drop to 0.76 and 0.7565 (200-DMA).