EUR/GBP surges to a fresh 2-month high level of 0.7950

The EUR/GBP cross maintained its strong bid tone, holding comfortably above 0.7900 handle, around 2-month high level and within striking distance of the mid-point of 0.7900-0.8000 handle. 

The British Pound remained an underperformer after the latest 'Brexit' polls pointed that the 'Leave' campaign continues to gain lead at the upcoming UK-EU referendum on June 23.

Moreover, the prevailing risk-off sentiment across Asian / European equities is extending support the funding currency, Euro, eventually supporting the EUR/GBP cross to sustain its strength above bove 0.7900 handle.

From a technical perspective, the cross has managed to rebound from 100-day SMA strong support and has subsequent provided a break through recent trading range, thus increasing the prospects of further upward trajectory in the near-term.

Technical levels to watch

Momentum above 0.7950 is likely to get extended but might confront strong resistance around 0.8000 psychological mark. A follow through strength above 0.8000 handle now seems to trigger a fresh leg of up-move for the cross, which might assist it further towards its next major resistance near 0.8080-85 zone.

On the downside, 0.7900 round figure mark now seems to protect immediate downside. Slide below 0.7900 handle is likely to be limited and got bought into around 0.7880-60 horizontal support.