EUR/GBP surges past 0.8300, hits multi-month high on Brexit worries

The shared currency continued with its outperformance against the British Pound, with the EUR/GBP cross hitting fresh 2016 high and rising to level not seen since late March 2014.

A fresh bout of selling pressure seems to have emerged across GBP pair, with the GBP/USD major now on the verge of breaking below Friday's Brexit led swing low level. Meanwhile, the shared currency, although weak, has held steady against it US counterpart. 

Sterling is also weighed down by lingering concerns over the economic implication on the UK economy after Friday's unexpected outcome from the Brexit referendum. Adding to this, UK Chancellor George Osborne also raised concerns over the uncertain environment and negated reassuring words that BOE, Treasury and FCA already have contingency plans in place. 

Looking forward, markets would continue to monitor and react to any further developments / news flow related to the crucial referendum and from the up-coming high profile meetings lined up later during the day.

Technical levels to watch

From current levels, the cross seems to extend its bullish momentum further towards testing March 2014 highs resistance around 0.8395-0.8400 region before heading towards 0.8460-65 resistance, marking Dec. 2013 highs. 

Meanwhile on the downside, session low region around 0.8200 mark now become immediate support for the pair. Reversal from multi-month high and a subsequent break below session lows now seems to trigger a near-term corrective move for the pair, dragging its back towards 0.8100 handle ahead of retesting the very important 0.8000 psychological mark support.

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