EUR/GBP once again fails to break through 0.85 mark

The EUR/GBP cross struggled to build on the French election-led bullish gap and now seems to have entered a consolidation phase just below the key 0.85 psychological mark.

Currently trading around 0.8490-85 band, testing session lows, the cross eroded part of previous session's strong up-surge and traded with mild bearish bias amid lack of follow through buying interest around the shared currency, despite of market friendly outcome from the first round of French Presidential election. 

French Elections: Odds of Marine Le Pen wining the second round are very low – Deutsche Bank

Meanwhile, sentiment surrounding the British Pound remains buoyed in wake of last week's announcement by the UK PM Theresa May calling for a snap election on June 8th and is eventually collaborating towards capping further up-move for the cross, at least for the time being.

In absence of any fresh fundamental triggers, in-terms of any major market moving economic releases, any fresh political news would continue to act as an exclusive driver of the pair’s movement on Tuesday.

Technical levels to watch

Immediate support is pegged near 0.8450 area, which if broken is likely to extend the corrective slide towards 0.8415-10 intermediate support ahead of 0.8380 level. On the upside, bulls would be eyeing for a sustained move beyond the 0.8500 handle, above which the cross is likely to aim towards 0.8540-45 resistance en-route 0.8570 resistance.