EUR/GBP recovers swiftly from 0.7800 neighborhood, jumps to 0.7850

Recovery from an important support at 100-day SMA near 0.7800 region seems to have gained traction, with the EUR/GBP cross trading above the mid-point of 0.7800-0.7900 handle.

Strong supply hitting the GBP/USD pair during the last hour of trading could be specific trigger that can be attributed to the sudden bullish spike in the EUR/GBP cross.

In terms of economic data for today, there were no indicators scheduled for release either from the UK or from the Euro-zone. Meanwhile, 'Brexit' worries might cap any sharp appreciating for the British Pound and thus limit any immediate downfall for the EUR/GBP cross.

Technical levels to watch

From current levels, the cross needs to sustain its strength above 0.7860 level, above which the pair is likely to make a fresh attempt towards reclaiming 0.7900 handle. On a convincing break through 0.7900 handle, the pair could be aiming to retest May highs resistance near 0.7945-50 area.

On the flip side, weakness below 0.7800 region (100-day SMA) is likely to find support near weekly swing lows near 0.7750 level, which if broken opens room for extension of the weakening trend towards retesting 0.7665-60 strong support.