EUR/GBP - Comatose below 38.2% Fibo

EUR/GBP has turned comatose below 0.7683 (38.2% of 0.6981-0.8117) levels after failing to sustain above the same on Tuesday.

Five-day losing streak

Pair has suffered five-day losing streak as falling Brexit bets saw GBP rally across the board. Moreover, markets believe ‘remain’ vote is likely to score a victory and thus could be pricing-in the same by sending risk assets higher.

However, this makes forecasting of post referendum moves difficult. There seems to be a consensus in the markets now that Brexit would be a surprise and could lead to a crash in Sterling. However, market stands confused on possible reaction in Cable if ‘remain’ vote wins as expected.

As for today, broader market sentiment is likely to influence the pair. Prices currently hover around 0.7670 levels.

EUR/GBP Technical Levels

The immediate resistance is seen at 0.7683 (38.2% of 0.6981-0.8117, above which prices could target 0.7755 (5-DMA). A violation there would expose 0.7807 (50-DMA). On the other hand, a breakdown of immediate support at 0.7654 (previous day’s low) would open doors for a slide to 0.76 handle. Breach of the psychological support could yield 0.7566 (200-DMA).