EUR/GBP spikes to fresh session tops, closer to mid-0.8700s

The EUR/GBP cross staged a sharp recovery from sub-0.8700 level and jumped to fresh session tops near 0.8740 region during early NA session.

Spot recovered part of previous session's corrective losses and remained closer to 2-1/2 month tops. The latest YouGov UK election model results, showing Conservatives falling short of an overall majority by 22-seats, attracted some fresh selling pressure around the British Pound and triggered the initial leg of recovery move from session lows.

Adding to this, possibilities of some stops being triggered on a decisive move back above 0.8725-30 region also seems to have collaborated towards accelerating the pair's sharp bullish spike in the past hour so. 

Meanwhile, a subdued price-action around the EUR/USD major did little to provide an additional boost, with political headlines ahead of the UK general election on Thursday continuing to act as an exclusive driver of the pair's sharp up-move since early European session.

Technical levels to watch

Momentum above mid-0.8700s might continue to face some supply pressure near 0.8770 level, above which the cross seems all set to aim towards reclaiming the 0.8800 handle. On the downside, retracement back below 0.8720 level, leading to a subsequent break through the 0.8700 handle, is likely to accelerate the slide further towards 0.8655-50 horizontal support.