EUR/GBP extending its slide further below 0.7800

The EUR/GBP cross remained well offered below 0.7800 handle as the British Pound continues to surge on the back of rising support for the 'Remain' camp in the upcoming UK-EU referendum on Thursday, June 23.

Outcome of the latest Brexit opinion polls conducted by BMG for the Herald, Opinium, YouGov and Survation over the weekend showed 'Remain' camp leading. The BMG poll for The Herald, showed 'remain' with 53.3% votes as compared to 46.7% votes for 'leave'. Meanwhile, Opinium shows a neck-to-neck fighre with both Leave and Remain votes at 44%. As per YouGov, 43% want to Leave and 44% voted to Stay and the Survation poll showed 42% supported Leave as against 45% wanting to Stay.

Currently trading at session low level of 0.7770, the EUR/GBP cross now seems to be headed towards recent swing low level of 0.7750. A fresh wave of support for the 'Remain' camp seems to have emerged after the killing of MP Jo Cox, a pro-EU leader, which might now act as a supportive pillar for the British Pound in the near-term and hence might restrict any swift recovery for the EUR/GBP cross.

Technical levels to watch

Weakness below 0.7750 immediate support seems to drag the cross immediately towards 0.7730-20 horizontal support, which if broken seems to open a fresh leg of weakness towards testing 0.7665-60 support ahead of its next major support near 0.7600 round figure mark. On the flip side, the pair need to reclaim 0.7800 handle resistance before making an attempt to extend its recovery further towards 0.7850-55 horizontal resistance.