The EUR/GBP cross is seen extending its side-ways pattern into holiday-quiet Europe, with the pound making recovery attempts versus its European peer following last week’s heavy tone.
EUR/GBP pressured on GBP recovery
Currently, the EUR/GBP pair drops -0.10% and hovers near fresh session lows of 0.7893 over the last hours, as the bulls continue their struggle to extend further beyond 0.79 handle amid a tepid recovery seen in the cable on 1.41 handle after the pound was pounded last week on mounting Brexit fears and hawkish comments from Fed officials.
However, the downside in the cross remains cushioned as the euro trades directionless in a tight range against the greenback amid light volumes as the European markets remain closed in observance of Easter Monday.
EUR/GBP Technical Levels
To the upside, the next resistance is located at 0.7947/50 (Mar 24 High/ psychological levels), above which it could extend gains to 0.8000 (round number/ Dec 2014 levels). To the downside immediate support might be located at 0.7865/62 (1h 200-SMA/ 10-DMA) below that at 0.7818/11 (20-DMA/ Mar 22 Low).
(Market News Provided by FXstreet)