EUR/GBP back to test 0.7850 ahead of Draghi?

Fresh bids in the cable coupled with a retreat in the EUR/USD pair, dragged the EUR/GBP cross from 0.7870 region to revisit daily lows struck at 0.7851 in early Asia.

EUR/GBP hovers around 5-DMA

Currently, the EUR/GBP pair trades almost unchanged at 0.7856, retreating from daily tops reached at 0.7871. The EUR/GBP cross shaved-off gains and now treads water around the mid-point of 0.78 handle, awaiting fresh impetus from the ECB President Draghi’s speech as well as from the UK trade balance data due later in the European session.

The cable regains 1.45 handle and remains supported on the back of higher commodities’ prices and broad based US dollar weakness, while the EUR/USD pair retreats as markets take profits off the table after hitting fresh monthly highs, ahead of Draghi’s scheduled speech.

EUR/GBP Technical Levels   

To the upside, the next resistance is located at 0.7880/0.7900 (Daily R1/ round number) above which it could extend gains to 0.7947 (May 4 High). To the downside immediate support might be located at 0.7751 (daily low) below that at 0.7725/00 (20-DMA/ round number).