EUR/GBP sinks further below 0.7600 handle

By FXStreet The EUR/GBP bears seem unstoppable as the pair now extends its slide further towards the mid-point of 0.7600-0.7500 handle.

GBP bulls got a boost after the latest IG/Survation EU Referendum Poll showed 44% votes for ‘Remain’ camp and 38% favoring to ‘Leave’ the EU. Receding fears of a ‘Brexit’ has led to the relative out-performance of the British Pound against the shared currency, thus dragging the EUR/GBP pair sharply lower for second consecutive day.

From technical perspective, RSI reading across various time-frames has dropped below 30 clearly pointing to highly oversold conditions in the near-term. Moreover, the pair is now approaching its intermediate strong support near 0.7550-45 area and hence warrants near-term consolidation before resuming its strong short-term downtrend.

Technical levels to watch

With RSI readings below 30, fall below 0.7550-45 immediate support is likely to be limited till at the very important 200-day SMA support near 0.7520-15 area.

Meanwhile on the upside, any attempts of recovery from oversold conditions might now confront immediate resistance near 0.7600 handle, beyond which the pair could extend the recovery towards an important support break-point now turned strong resistance near 0.7660-65 zone.
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Source:: FX Street