EUR/GBP facing stiff resistance around 0.7900 region

Stability in the cable around 1.4400 seems to act as headwind for the EUR/GBP pair's further up-move as the pair seems to have stalled below 0.7900 handle. 

Currently trading around 0.7880, the pair has eased from early Asian session swing high level of 0.7906 as the latest polls continued fueling uncertainty surrounding 'Brexit' and its implication on the UK economy. The latest poll results on June 23 EU referendum, released over the weekend, showed increasing lead for the "Leave" campaign.

The pair, however, failed to capitalize on its initial up-move and now seems to digest its early gains to currently consolidate below 0.7900 handle. Moreover, recovery in cable, led by new release that British MPs' might be considering to use majority to keep the UK within EU, also seems to have capped further up-side for the EUR/GBP cross.

Technical levels to watch

Janne Muta, Chief Analyst at HotForex notes, "The resistance area between 0.7894 and 0.7920 turned out to be a challenge for the bulls after the pair had moved higher by more than 3% in 5 days. Daily Stochastics oscillator is about to give a bearish signal and price itself is rolling over in the 60 min time frame. If the current 4h candle closes (< 60 min to go) below 0.7885 a bearish shooting star candle is created. This adds to my view that price is probably turning lower."

"I’m looking for sell signals inside my Sell Area between 0.7870 and 0.7900 while my Target 1 for the this trade is at 0.7776 – 0.7800 bracket and my Target 2 at 0.7690 – 0.7720."