EUR/GBP looks to close bullish opening gap, Lab seen gaining minority?

Having failed to resists a spike above 0.88 handle, the cross in EUR/GBP is seen reversing the rally and is back near the mid-point of 0.87 handle amid a broad GBP bounce.

EUR/GBP volatile on UK vote exit polls

The cross continues to sway back and forth sub-0.88 handle, tracking the GBP dynamics, as the outcomes of the UK vote exit polls continue to have a major influence on the GBP markets, with markets awaiting the final outcome.

The latest leg higher in cable is mainly driven by the BBC headlines, citing that Conservatives are seen winning 322 seats versus 308 previous, while the Labour is predicted to get 261 seats. However, further retreat in EUR/GBP appears to have stalled, as markets remain cautious amid increased odds of a hung parliament.

Looking ahead, all eyes remain on the final outcome, with risk sentiment recovering, despite predictions of Cons not seeking majority, which suggests market pricing in a Labour minority government.

EUR/GBP Technical Levels

To the upside, the next resistance is located at 0.8800 (round figure) above which it could extend gains to 0.8826 (5-month tops) and from there to 0.8850 (psychological levels). To the downside immediate support might be located at 0.8700 (daily low/ key support), and from there to 0.8651 (Jun 8 low), below 0.8590 (200-DMA) would be tested.