EUR/GBP bounces off 0.7640, ‘Brexit’ eyed

After bottoming out in the 0.7640 area, EUR/GBP has managed to regain the vicinity of 0.7670 ahead of the EU-UK Referendum.

EUR/GBP attention to ‘Brexit’, PMIs

The rally in GBP has been weighing on the European cross since last week, triggering a sharp sell off of around three big-figures from levels above the 0.7900 handle.

Later poll results keep favouring a ’Bremain’ scenario, while bookmaker Betfair sees the probability of a ‘Stay’ win around 80%.

Back to Euroland, preliminary June PMIs are also expected in the region ahead of tomorrow’s German IFO.

EUR/GBP key levels

The cross is now losing 0.08% at 0.7670 and a breakdown of 0.7570 (low May 30) would open the door to 0.7523 (low Feb.3) and then 0.7310 (2016 low Jan.3). On the flip side, the next resistance lines up at 0.7733 (61.8% Fibo of 0.7570-0.7996) ahead of 0.7794 (20-day sma) and then 0.7816 (55-day sma).