EUR/GBP: Brexit fears set back, bears in control

EUR/GBP is currently testing the downside again after a minor recovery on yesterday's extension of the renewed downtrend and Sterling strength taking the cross below the 0.78 and 0.77 handles.

"With the BoE a likely Fed follower, sterling was also up sharply. A further lift was provided by a much better-than-expected retail sales number and headlines that betting odds at one of the bookies had surged to an 82% chance of a Remain win (the highest yet)," explained analysts at TD Securities. MEanwhile, Brexit fears are set back for the time being, but expect a bumpy road ahead in this cross.

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EUR/GBP levels

EUR/GBP has broken the support of 0.7652 and marked the lowest level since since 9th March and the Feb 7th lows with next objective of 3rd Feb lows at 0.7589. On the upside, 0.7830 and 0.7860 are key recent highs that could come as resistance with orders tucked in above the 50 dma at 0.7880.