EUR/GBP comes down to test 0.8000

EUR/GBP has seen some profit taking since overnight peaks in levels above the 0.8300 mark, currently approaching the psychological support at 0.8000.

EUR/GBP boosted after ‘Brexit’

The European cross has surged to the 0.8315/20 band in the wake of the ‘Brexit’ win during overnight trading, levels last seen in March 2014.

Both the single currency and the sterling are now recovering from daily lows, albeit they remain well entrenched in the negative territory as global markets keep adjusting to the recent events in the UK.

Data wise, German IFO has surprised markets to the upside for the month of June, although markets have largely bypassed the results.

EUR/GBP key levels

The cross is now gaining 4.61% at 0.8004 and a breakout of 0.8315 (high post-referendum Jun.24) would aim for 0.8401 (monthly high March 2014) and then 0.8586 (monthly high October 2013). On the other hand, the initial support aligns at

0.7601 (low Jun.23) ahead of 0.7576 (200-day sma) and finally 0.7562 (low May 25).