EUR/GBP sits near session tops, around 0.8830 level
• Bulls resilient below 0.8800 handle.
• EUR demand/general GBP supply help stage a solid rebound.
The EUR/GBP cross snapped three consecutive days of losing streak and staged a solid rebound on Wednesday.
The cross stalled its retracement slide from post-BOE swing highs, near the 0.8940 region, and attracted some strong buying interest near 0.8790 horizontal support.
• EUR/GBP could base around 0.8810 – Commerzbank
Currently trading around 0.8830 level, off few pips from session tops touched in the past hour, the cross benefitted from some notable demand for the shared currency and generalized GBP supply.
It, however, remains to be seen if the up-move is backed by genuine buying interest or is solely led by some short-covering, especially in the wake of some resilience below the 0.8800 handle.
Today's economic docket lacks any important market-moving data, and hence, the cross seems more likely to enter a consolidation phase ahead of Friday's key UK manufacturing data.
Technical levels to watch
A follow-through up-move might confront some supply near mid-0.8800s, above which a bout of short-covering could lift the pair back towards the 0.8900 handle en-route 0.8935-40 strong horizontal resistance.
On the flip side, the 0.8800-0.8790 region seems to have emerged as immediate strong support, which if broken could accelerate the slide towards 200-DMA support near 0.8765 area en-route 0.8735 level (early Nov. low).