EUR/GBP trims gains, back below 0.8100 level

The EUR/GBP cross has erased over 200-pips from an early morning surge to 0.8300, its highest level since April 2014, to currently trade just below 0.8100 handle

The British Pound reacted with extreme volatility and got slammed across the board after the outcome of the crucial UK-EU referendum vote gave a clear majority to the Leave camp. 

With a recovery of almost 500-pips in the GBP/USD major, the EUR/GBP cross has also trimmed some of its hefty gains, taking some support from BOE’s general statement that it will take all necessary steps to ensure monetary and financial stability.

Next in focus would be any further statements from UK PM Cameron or BoE Governor Carney. However, uncertainty over the economic implications of leaving the European Union might restrict any further recovery for the British Pound. 

Watch-out for 0.8300 round figure resistance on the up-side, which is followed by 2014 highs resistance around 0.8395-0.8400 region. 0.8000 psychological mark now becomes important support on the downside.