EUR/GBP jumps to 0.8260, now eyeing 0.8300 and Brexit swing high
|Building on to its weekly bullish gap, the EUR/GBP cross has now moved beyond the mid-point of 0.8200-0.8300 handle to currently trade near session high level, inching closer to over one year-high level of 0.8315 touched on Friday after the outcome of Brexit referendum.
Despite of the spillover effect of the unexpected outcome of the critical UK-EU referendum, the shared currency remained a relative outperformer against the broadly weakening British Pound on Friday. The outperformance extended on Monday as the Moody's downgraded of the outlook for the British government debt from "stable" to "negative" is seen weighing on the sterling.
Market focus will remain on developments and announcements surrounding the Brexit vote and would drive investor sentiment surrounding the British Pound and other major currencies, including Euro.
Technical levels to watch
On the immediate upside, Euro bulls would be aiming to move back above 0.8300 handle ahead of Friday's swing high resistance around 0.8315, above which the cross seems to extend its upward trajectory further towards March 2014 highs resistance near 0.8395-0.8400 region.
On the flip side, weakness back below 0.8200 mark and a follow through selling below session lows, is likely to drag the pair back towards 0.8100 round figure mark. Momentum below 0.8100 level is likely to get extended further towards retesting the very important 0.8000 psychological mark support.
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