EUR/GBP stages a strong recovery, jumps to 0.7726

By FXStreet Extending its strong bid tone, the EUR/GBP pair surpassed 0.7700 with ease and climbed to day’s peak level of 0.7726 during the early NY trading session.

The British Pound’s relative under-performance was led by the latest TNS ‘Brexit’ polls, giving the ‘Leave’ campaign a lead of 3 points over ‘Remain’. Moreover, a mild recovery in the EUR/USD pair also contributed to the EUR/GBP pair’s up-move on Friday. However, despite of Friday’s recovery, the pair would still register a cut of over 2% for the current week. Moreover, a weekly close below 0.7725 would mark the pair’s lowest closing since early Feb.

Meanwhile from technical perspective, the pair is recovery from slightly near-term oversold conditions. Moreover, the pair has already broken through an important support confluence support near 0.7770-75 and hence, remains vulnerable to resume its near-term downward trajectory.

Technical levels to watch

From current levels, the pair could be headed towards 0.7730 resistance, above which the cross is likely to confront hurdle at its previous strong support turned resistance near 0.7720-25 area.

Meanwhile on the downside, 0.7700 round figure mark now becomes immediate support. This is closely followed by support near yesterday’s close near 0.7665 level. A break back below Thursday’s closing …read more

Source:: FX Street