EUR/GBP consolidating gains just below 0.8400 handle

The British Pound continues to witness intense selling pressure, with the EUR/GBP cross rising to 0.8400 handle and is now seen consolidating just below session high level at 0.8390 region.

The shared currency outperformed its British counterparts as traders seem reluctant to take positional bets ahead of Thursday's ECB monetary policy meeting. Although the ECB is expected to maintain its current monetary policy stance, market participant would be looking for cues over possibilities of additional easing measures at the central bank’s next policy meeting in September. 

Meanwhile, the sterling failed to benefit from the up-tick in UK CPI during the month of June and has been weighed down on prospects of additional monetary easing by BOE and uncertainty surrounding the economic implication of last month's historic Brexit referendum. 

Technical levels to watch

On the immediate upside, 0.8470 (July 14) seems to act as immediate resistance, above which the pair could be headed back above 0.8500 handle towards 0.8525 resistance (July 12 high). On the flip side, weakness below 0.8300 level seems to drag the pair back towards 0.8250 (July 14 low) ahead of 0.8200-0.8190 support area (June 27-29 lows).