EUR/GBP offered in the open but turning around on Macron victory, eye son 0.85 handle

EUR/GBP opened today on the offer with sterling gapping to 1.2982 vs the close of 1.2923.

Despite a bid in EUR/USD on the back of the Macron victory, the cross was subject to demand in the pound and opened at 0.8472 vs 0.8499 Friday's close. It is more a sterling story considering the pound has gained against the dollar for four weeks and seven of the past eight weeks. GBP/USD is currently knocking on the doors of the 1.30 handle and technically, it is looking very bullish with the golden cross on the cards - a bullish technical charting indicator where the 50 DMA crosses up through the 200 DMA. The DXY is also starting out offered at the start of this week and aiding the pound's advance yet again. 

• EUR/JPY analysis: challenging December 2016 high
• First exit polls: Emmanuel Macron projected to win French presidential election second round
• EUR/USD opened at 1.0999 and made a first high at 1.1010 after Macron's victory
• Official results (34.2m votes): Macron 62.89% vs. Le Pen 37.11%

EUR/GBP levels

The seven-month resistance line is located at 0.8590. "While this caps, a retest of key support at 0.8334/04 may be seen. If slipped through, the 0.8252 the July 2016 low would be in focus," argued analysts at Commerzbank. The closest key support is located at the 1hr 200 ema at 0.8462 and last weeks 5th May low at 0.8460. The price is embarking on the 0.85 handle as the market turns bullish in a recovery of the opening bearish gap.