EUR/GBP: Bulls fighting for 0.79 handle amid weaker GBP

Having bottomed out at 0.7869 in mid-Asia, the cross in the EUR/GBP extends its recovery mode towards the mid-European session and looks to test 0.79 handle amid broad GBP weakness.

EUR/GBP tests 50-DMA

Currently, the EUR/GBP pair trades 0.24% higher near fresh session highs of 0.7894, where the 50-DMA resistance intersects. The upbeat momentum behind the EUR/GBP cross can be largely attributed to the sustained weakness in the pound against its American counterpart amid weaker London stocks and on expectations of no growth in the UK’s consumer prices, with the inflation report lined up for release tomorrow.

While the EUR/USD pair trades modestly flat ahead of 1.13 handle and contributes slightly to the gains in the cross, as markets now await the US regional manufacturing index and housing data for fresh momentum amid light trading.

EUR/GBP Technical Levels

To the upside, the next resistance is located at 0.7948/50 (Mar 31 High/ psychological levels) above which it could extend gains to 0.8000 (round number). To the downside immediate support might be located at 0.7856 (20-DMA) below that at 0.7800 (round number).