EUR/GBP bounces off 0.8300, EU Summit eyed

EUR/GBP has faded yesterday’s spike to fresh tops above 0.8350 although it seems it has found decent support around the 0.8300 neighbourhood for the time being.

EUR/GBP attention to Summit

The cross met renewed selling pressure following some sort of pick up in the demand for the British pound, snapping at the same time two consecutive sessions with gains including a test of the 0.8380 area on Monday, levels last traded in March 2014.

Ahead in the session, the EU Leaders Summit will discuss the recent Brexit vote and future measures to implement, while rumours were signalling the Conservative Party could appoint a new leader before October. Adding to the effervescence, agencies Fitch and S&P have downgraded the UK’s credit rating to AA/negative.

EUR/GBP key levels

The cross is now losing 0.11% at 0.8326 and a breakdown of 0.8163 (low Jun.27) would open the door to 0.7996 (high Jun.16) and then 0.7902 (20-day sma). On the flip side, the next up barrier lines up at 0.8379 (high Jun.27) ahead of 0.8401 (monthly high Mar.18 2014) and then 0.8467 (monthly high Dec.17 2013).