EUR/GBP Intraday Sharp Reversal Now Eyeing 0.7865 Support
pair once again failed to built on to its strength and reversed from
0.7925 strong resistance to currently trade near session low of 0.7875
The British Pound's relative out-performance against the shared currency was on the back of a survey result, which was conducted by YouGov for The Times and showed that the number of people willing to say in the EU were higher than the people supporting the 'Leave' Camp. The survey outcome triggered a broad based buying interest for the British Pound, dragging the EUR/GBP pair lower.
From technical perspective, the pair's reversal from 50% Fibonacci retracement level of 0.8117-0.7735 downfall and a subsequent weakness back below 50-day SMA might now trigger a fresh leg of near-term weakness for the pair.
Technical level to watch
Bulls would be eyeing to find some support at 50-day SMA region, near 0.7865-60 level, which if broken should drag the pair immediately to 0.7845 support. Further, reversal from important resistance level and a subsequent drop back below an important support now seems to increase the pair's vulnerability to continue drifting lower towards its next major support near 0.7780 level in the near-term.
On the flip side, any attempts of recovery might now confront immediate resistance near 0.7900 handle. However, major upside resistance still remains near 0.7925 level and only a convincing strength above this strong resistance might negate near-term bearish outlook for the pair.