EUR/GBP clings to weekly bullish gap beyond 0.8800 handle

The EUR/GBP cross was seen consolidating weekly bullish gap up opening to two-month high level beyond 0.8800 handle.

Currently trading around 0.8830-25 region, a tepid recovery move around the GBP/USD major, following a retest of October flash crash lows, was seen restricting further upside for the cross.

However, a mild bid tone around the EUR/USD major was seen supporting the cross to hold on to its strong gains to the highest level since Nov. 9. 

Meanwhile, renewed concerns of a 'hard Brexit', in wake of weekend news report over the UK Prime Minister Theresa May's upcoming speech on Tuesday might continue to weigh on the British Pound and limit any immediate downslide. 

Technical levels to watch

A follow through buying interest above session peak resistance near 0.8845-50 region has the potential to lift the cross to 0.8870 intermediate resistance ahead of an important barrier near 0.8900 round figure mark. On the downside, 0.8810-0.8800 region now becomes immediate support to defend, which if broken is likely to accelerate the slide back towards 0.8765 support area, en-route 0.8735-30 horizontal zone.