EUR/GBP Nose-Dives to a Fresh Three-Week Low
The EUR/GBP
pair extended its slide further below 0.7800 handle after the latest
'Brexit' poll results showed 'Remain' camp holding their lead.
Earlier on Wednesday, the pair delivered a muted reaction to stronger UK
jobs report, but still remained in the vicinity of 0.7800 handle.
Following the poll results, the pair reversed sharply from 0.7820 level
and dropped to a fresh three-week low level of 0.7763.
From technical perspective, the pair is currently trading around a
short-term ascending trend-line support (extending from Feb. through
lows tested in March and April) near 0.7765-60 area. A clear break below
this immediate support would trigger a fresh leg of weakness for the
pair.
Technical levels to watch
Weakness below 0.7765-60 support seems to drag the pair immediately
towards April lows support near 0.7740-35 zone. Moreover, below
0.7765-60 the pair would remain vulnerable to extend its downward
trajectory towards 0.7700 round figure mark support.
On the flip side, any attempts of recovery might now face immediate
resistance near 0.7800 handle and even if the pair manages to clear this
immediate hurdle, any further recovery might now be capped at the
near-term trading range break-down point, now turned strong resistance,
near 0.7840-50 region.
