EUR/GBP well bid for second straight session, jumps to fresh multi-day tops

The EUR/GBP cross maintained strong bid tone for the second consecutive session and built on Friday's strong recovery move, further beyond the 0.8500 psychological mark.

Currently trading around 0.8525-30 band, the cross rose to multi-day tops amid some renewed selling pressure around the British Pound in reaction to news report that the UK government is preparing for a new Scottish independence referendum. Adding to this, a bid tone surrounding the EUR/USD major, and possibilities of some short-covering following a decisive move above the 0.8490-95 horizontal resistance, further collaborated to the EUR/GBP pair's strong up-move at the start of a fresh trading week. 

Meanwhile, lower-than-expected Spanish flash CPI print for the month of February did little to hinder the pair's up-move as market participants now look forward to fresh developments surrounding the Brexit legislation, with the House of Lords begin discussion and cast vote on amendments to the bill.

Technical levels to watch

From current levels, 50-day SMA near 0.8545-50 region seems to act as immediate resistance, which if cleared has the potential to lift the cross towards 0.8590 hurdle (Feb. 17 high) ahead of 0.8600 round figure mark. On the flip side, the 0.8500 handle now become immediate support to defend. Failure to hold this immediate support, leading to a subsequent break below 0.8475 horizontal support, would negate any near-term bullish bias and turn the pair vulnerable to head back towards testing 0.8430 intermediate support, en-route the 0.8400 round figure mark.