EUR/GBP clings to strong recovery gains, above 0.88 ahead of May’s Brexit speech

The EUR/GBP cross once again managed to catch some fresh bids near the 0.8780-75 region and has now moved past previous session's swing highs.

Currently trading around 0.8830 level, just a few pips away from session tops touched in the past hour, the shared currency's relative outperformance on Friday against the British Pound could be attributed to better-than-expected flash Euro-zone PMI prints for September. 

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Meanwhile, some nervousness ahead of the upcoming Breixt speech by the UK Prime Minister Theresa May kept the Sterling on the back foot and further collaborated to the pair's strong up-move through early European session. 

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May’s remarks might now act as a key catalyst influencing sentiment surrounding the British Pound and hence, could trigger some fresh bout of volatility across GBP crosses. 

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Technical levels to watch

Immediate resistance is pegged near mid-0.8800s, above which the cross is likely to accelerate the up-move towards 0.8875-80 horizontal zone before eventually darting towards the 0.8900 handle.

On the flip side, any retracement from higher levels might now find support near the 0.8800 handle, which is followed by a strong support near the 0.8775-70 region.