The EUR/GBP cross traded with negative bias for the second consecutive session and extended previous session’s reversal move from over two-week highs.
The cross continued facing fresh supply at higher levels and has repeatedly failed to sustain its up-move beyond the key 0.85 psychological mark. Market now seems to look beyond initial euphoric reaction to the pro-EU candidate, Emmanuel Macron’s victory in the first round of the French Presidential elections.
A fresh bout of buying interest surrounding the British Pound, against the backdrop of optimism led by the UK PM Theresa May’s announcement to call for a snap election on June 8th, as been a key factor dragging the cross back towards weekly lows support near mid-0.8400s.
On the economic data front, the preliminary release of German CPI print for April would be looked upon for some fresh impetus. However, the upcoming ECB monetary policy decision would remain in spotlight, which would help investors to determine the next leg of directional move for the shared currency and eventually move the EUR/GBP cross.
Technical levels to watch
A follow through retracement below 0.8450 level, the cross is likely to extend the corrective slide towards 0.8415-10 intermediate support ahead of 0.8380 level. On the upside, the 0.8500 handle remains immediate strong hurdle, which if conquered should now help the cross to move past two-week highs resistance near 0.8530 level towards testing its next hurdle near 0.8570 area.