EUR/GBP Recovers Sharply, Erases Majority of its Losses to Move Back Above 0.7850
pair's recovery from day's through level of 0.7800 gained traction in
the last one hour, boosting the pair back above 0.7850 level (20-day SMA
The relative EUR out-performance could be attributed to a sudden spurt in bid tone for the EUR/USD pair, that has now recovered sharply from sub-1.1300, day's through level touched after the release of upbeat US CPI data.
Earlier on Tuesday, the pair dropped sharply to 0.7800 handle, finally breaking through its near-term trading range, after the latest 'Brexit' polls showed rise in the number of people favoring to remain in the EU.
Investors now shift their focus back to the looming deflationary concerns in the Euro-zone that is expected to be reflected in the final print of the composite Euro-zone CPI reading, slated for release on Wednesday.
Technical levels to watch
From current levels, move above 0.7950-60 is likely to accelerate the move further towards 0.7900 handle, which if conquered decisively would open room for further appreciating move in the near-term.
On the flip side, resumption of the weakening trend might continue to find strong support near 0.7800 handle, below which the pair seems vulnerable to immediately drop towards testing 0.7780 horizontal support before extending its downward trajectory towards April daily closing lows support near 0.7750 level.