EUR/GBP back above 0.8300, seems to extend the bullish momentum

Following Tuesday's minor corrective move to 0.8250 region, the EUR/GBP cross has now moved back to 0.8300 level as the prevalent uncertainty surrounding the historic http://www.fxstreet.com/rates-charts/advanced-charts/?pair=eur/gbphttp://www.fxstreet.com/macroeconomics/events/brexit seems to restrict any swift recovery for the British Pound. 

Following its sharp appreciating move of over 750-pips in just two trading session, a short-covering bounce in the GBP/USD major led to a relative outperformance of the British Pound against its European counterpart and triggered a near-term profit-taking move in the EUR/GBP cross on Tuesday. 

However, political uncertainty and economic implication of UK's decision to leave the European Union is weighing on investor sentiment and restraining any sharp recovery for the British Pound. 

Moving ahead, investors focus will remain on news flow and developments surrounding the referendum while they confront the release of German prelim CPI print for the month of June. UK PM David Cameron is set to meet other EU leaders later today and markets would await for further comments from the second day of the EU council meeting.

From technical perspective, Tuesday's corrective move was short-lived clearly suggesting a consolidation phase before the pair resumes its near-term upward trajectory. 

Technical levels to watch

From current levels, 0.8330-50 region seems to provide some immediate resistance, above which the pair seems all set to aim towards March 2014 highs resistance around 0.8400 round figure mark. Strong momentum above 0.8400 handle would open room for continuation of the pair's appreciating move in the near-term.

On the flip side, weakness below Tuesday's low support around 0.8250 is likely to get extended and is likely to drag the pair below 0.8200 level, towards testing weekly lows support near 0.8185 before heading towards filling weekly price-gap and drop to 0.8125-20 region.