EUR/GBP holding with minor gains above mid-0.8300s ahead of EZ CPI

The EUR/GBP cross seems to have entered a bearish consolidative phase and remained confined within a narrow trading range just above mid-0.8300s.

On Tuesday, the cross came under intense selling pressure after the UK PM Theresa May called for a snap election on June 8th. Expectations of a strong performance in the election was seen strengthening May's position during Brexit negotiations and triggered a strong GBP rally across the board, with the cross plummeting to its lowest level since early December. 

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With both the GBP/USD and the EUR/USD majors consolidating previous session's strong gains, the cross lacked any follow through momentum and has held above previous session swing lows to 0.8300 neighborhood. 

Focus shifts to a fairly lighter economic docket, featuring the only release of final Euro-zone CPI print. There are now major macroeconomic releases due from the UK and hence, political developments, ahead of the crucial French Presidential elections and UK elections, would continue to be key determinants of the pair's near-term trajectory.

Technical levels to watch

Immediate resistance is pegged near 0.8375-80 zone, above which the cross is likely to aim towards reclaiming the 0.8400 handle and aim to test its next resistance near 0.8420 region.

On the flip side, weakness below 0.8345-40 area might turn the cross vulnerable to head back towards multi-month lows support near the 0.8310-0.8300 region, below which the depreciating move could get extended towards mid-0.8200s.