EUR/GBP hits new five-day lows near 0.7870

The EUR/GBP cross extends weakness into a third-day today, as the strength in the cable outweighs that in the EUR/USD pair.

EUR/GBP rejected just ahead of 0.79 handle

Currently, the EUR/GBP pair now drops -0.35% to fresh five-day lows of 0.7875, having failed to sustain above 0.79 handle. The EUR/GBP cross remains heavily sold-off into the pound’s bullish momentum in response to the suspension of Britain’s campaign for EU referendum. While the cable also jumps higher amid a renewed risk-on rally in the European equities, lending support to the higher-yielding currency GBP.

However, further losses in the cross look restricted as the EUR/USD pair also found fresh bids, following the release of better-than expected Eurozone current account data. Markets now look forward to the US data and ECB Chief Draghi’s speech for further momentum on the pair.

EUR/GBP Technical Levels   

To the upside, the next resistance is located at 0.7906/08 (Daily high/ 5-DMA) above which it could extend gains to 0.7973 (June 14 high). To the downside immediate support might be located at 0.7808/02 (50 & 20-DMA) below that at 0.7757/50 (Jun 7 Low).