EUR/GBP attempts a tepid bounce to 0.7700

Having bottomed out at 0.7682 in the Asian opening trades, the cross is struggling hard to take on the recovery above 0.77 handle, despite heavy selling seen in the pound across the board.

EUR/GBP fast approaching 200-DMA?

Currently, the EUR/GBP pair trades 0.12% higher at 0.7694, flirting with 0.77 handle over the past few hours. The recovery in the EUR/GBP cross can be mainly attributed to the extension of the FOMC minutes-backed losses in the cable, while EUR/USD trades muted ahead of 1.12 handle.

Next of relevance for the cross remains the UK retail sales and ECB monetary policy account lined up for release later this session, as traders await the European markets’ reaction to the hawkish FOMC minutes.

EUR/GBP Technical Levels

To the upside, the next resistance is located at 0.7734/50 (Daily Pivot/ psychological levels) above which it could extend gains to 0.7790/96 (5 & 100-DMA). To the downside immediate support might be located at 0.7650 (key support) below that at 0.7526 (200-DMA).