EUR/GBP fades a spike to 0.7700 neighborhood

Extending its rebound from session low level of 0.7641, the EUR/GBP pair moved close to 0.7700 handle before retracing to turn flat at 0.7680 as the UK-EU referendum voting, which would decide UK's fate in the European Union, gets underway.

Of late optimism surrounding the outcome of the crucial Brexit vote had been weighing on the pair, wiping off over 300-pips from the vicinity of 0.8000 handle in just 3-trading sessions.

Traders seem to position themselves cautiously as they now await for the final outcome of the referendum vote, which would probably be available early UK time on Friday.

In the meantime, the flash version of the Euro-zone PMI, scheduled for release during the European session, will be looked upon for some immediate trading opportunities in the EUR/GBP cross.

Technical levels to watch

On the immediate downside, 0.7650 area remains immediate support to defend, below which the cross is likely to accelerate the slide immediately towards 0.7600 handle before dropping back to May swing lows support near 0.7565-60 area.

On the flip side, momentum above 0.7700 round figure mark resistance seems to assist the pair back towards weekly high resistance around 0.7745-50 region, touched on Tuesday. The momentum could further get extended towards its next major resistance around 0.7800 round figure mark.