EUR/GBP around 0.7630 ahead of IFO

It seems EUR/GBP has recovered the smile today, advancing to the area of 0.7630 following yesterday’s deep pullback.

EUR/GBP looks to IFO

The European cross has managed to regain some pips after Tuesday’s drop to fresh 3-month lows in the 0.7600 neighbourhood in response to a renewed demand for the British pound an a persistent selling mood around the shared currency.

Ahead in the session, the German IFO will be in the limelight, while latest poll results in the UK referendum keep pointing to a wider gap in favour of the ‘Stay’ vote, in turn supporting GBP.

EUR/GBP key levels

The cross is now up 0.22% at 0.7631 and a breakout of 0.7791 (100-day sma) would expose 0.7813 (20-day sma) and then 0.7947 (monthly high May 4). On the other hand, the immediate support is located at 0.7611 (low May 24) followed by 0.7523 (low Jan.22) and finally 0.7310 (low Jan.5).