EUR/GBP hits a 3-week low level of 0.7730

Extending its slide further below 0.7800 handle, the EUR/GBP cross dropping to a three-week low level of 0.7730 before retracing few pips to currently trade around 0.7740.

‘Brexit’ continues to grab the headline with the British Pound benefitting from the latest poll results showing voters inclination back towards 'Remain' camp. Tempering 'Brexit' worries seems to assist the sterling to relatively outperform its European counterpart.

However, despite of a lead to the 'Remain' camp traders might be reluctant to carry their big bullish GBP bets ahead of the key event risk and hence could possibly restrict any further downslide for the EUR/GBP cross.

Technical levels to watch

From current levels, bulls will attempt to defend 0.7730-20 horizontal support, below which the pair could immediately slide below 0.7700 handle towards testing 0.7665-60 support. Meanwhile, any attempts of recovery might now confront immediate resistance around 0.7760 level, which is followed by resistance near 0.7800 handle. A follow through buying interest above 0.7800 level has the potential to boost the pair further towards its next major resistance around 0.7855-60 zone.