EUR/GBP plunges to 0.7800 on 'Brexit' polls, awaits UK CPI for further direction

The EUR/GBP pair got slammed to 0.7800 mark after GBP bulls got a boost from the latest 'Brexit' polls that showed rise in the number of people favoring to remain in the EU.

The pair finally broke through its near-term trading range to currently trade just above 0.7800 handle with a loss of around 0.7% for the day. On Monday, the British Pound managed to erase early losses against its European counterpart and reversed to 0.7860 support from the vicinity of 0.7900 handle. The downward momentum got aggravated on Tuesday, dragging the pair to a three-week low level.

Investors now turn their focus on UK CPI print for the month of April, which if disappoints on the downside could provide some respite for the pair. However, should the release matches consensus estimates, the British Pound is more likely to extend its out-performance against the Euro.

Technical levels to watch

Below 0.7800 round figure mark, the pair seems to immediately drop to test 0.7780 horizontal support before extending its downward trajectory towards April daily closing lows support near 0.7750 level.

On the upside, any attempts of recovery might now confront strong resistance at the recent trading range support near 0.7850-60 area. Only a decisive move back above this support turned strong resistance and a follow through buying interest beyond 0.7900 handle would turn down any further near-term bearish bias for the pair.