EUR/GBP flirts with lows near 0.7880

A sharp recovery of the Sterling is prompting EUR/GBP to return to levels below the 0.7900 handle.

EUR/GBP focus on risk, ‘Brexit’

The European cross is shedding over a cent since yesterday’s failed attempt to re-test the psychological 0.8000 barrier, breaching the 0.7900 key support and challenging weekly lows in the vicinity of 0.7880.

Absent releases in the UK docket today, the focus of attention will remain on the EU-UK Referendum on June 23. In the euro area, Labor Cost figures plus Current Account results are due for release.

EUR/GBP key levels

The cross is now losing 0.18% at 0.7890 and a breakdown of 0.7849 (55-day sma) would expose 0.7824 (100-day sma) and finally 0.7757 (low Jun.7). On the flip side, the next resistance lines up at 0.7994 (high Jun.16) ahead of 0.8000 (psychological level) and then 0.8119 (2016 high Apr.7).