EUR/GBP: Aggressive selling seen on wrong GBP move

A renewed selling wave gripped the EUR/GBP cross in the late-Asian/ early European trades, mainly driven by strong bullish moves in the cable on an erroneous trade.

EUR/GBP: quick reversal onto 0.78 barrier

Currently, the EUR/GBP pair drops -0.55% to 0.7819, quickly reversing a dip to 0.7754 lows. The EUR/GBP cross plunged almost 90-pips in a knee-jerk downward spike after the cable rallied 200-pips in a fraction of a second, with a wrong big figure entered on an order speculated as the main catalyst behind move. Usually such erroneous trades take place, if a fat finger happens to be the case.

However, the slump was quickly reversed and the cross regained 0.78 barrier, as the GBP/USD pair retraced more than half the upward rally. While muted trading activity around the EUR/USD pair provides little incentive to the prices.

Meanwhile, markets will take a while before returning to normalcy, with no relevant economic data to provide fresh impetus to the cross amid looming Brexit concerns.

EUR/GBP Technical Levels   

To the upside, the next resistance is located at 0.7890/0.7900 (Daily R1/ round number) above which it could extend gains to 0.7947 (May 4 High). To the downside immediate support might be located at 0.7754 (daily low) below that at 0.7724/00 (20-DMA/ round number).