EUR/GBP bounces to the upside from 0.8205

EUR/GBP  extended the recovery after finding support above 0.8200 on the back of a decline of the pound across the board as market awaits political news from the United Kingdom. A new Conservative leadership could emerge anytime and is likely to influence on the pound.

During the last hour EUR/USD approached daily highs while GBP/USD trimmed gains, hence EUR/GBP bounced sharply to the upside, erasing most of the day’s losses.

The pair bottomed earlier at 0.8206 and now is trading at American session highs at 0.8271, slightly below yesterday’s closing price. The euro is making an intraday reversal and if it continues to rise it could end the correction that started on Monday from 0.8375/80.

EUR/GBP levels to watch

To the downside, support levels could be located at 0.8255 (June 28 low), 0.8200/05 (daily low), and 0.8170 (June 27 low). On the opposite direction, resistance is seen at 0.8300 (psychological), 0.8320 (daily high) and 0.8375/80 (June 27 high).