EUR/GBP looking to stabilize around 0.8530 region

The British Pound outperformed its European counterpart, with the EUR/GBP cross trading with bearish bias for the third consecutive session and inching closer to 0.8500 psychological mark.

Currently trading around 0.8530 region, testing session lows, the cross remained under some selling pressure in wake of rising concerns over the political climate in the Euro-zone, ahead of the upcoming French elections. 

Meanwhile, Tuesday's hawkish comments from BoE's Kristin Forbes, hinting towards at a possible BoE interest rate-hike in the near-future continues to benefit the British Pound and collaborated to the pair's downslide to multi-day lows.

On Tuesday, the cross reversed sharply after Forbes' comments and the downslide accelerated further once the pair broke below 0.8580-75 support area. The cross now seems to stabilize around 0.8525-30 area as investors remain anxious ahead of the final House of Commons vote on the Brexit bill.

Technical levels to watch

Immediate support on the downside is pegged at 0.8500 mark below which the cross is likely to extend the downslide further towards Jan. monthly lows support near 0.8450 region, with 0.8470-75 region (Jan. 26-27 lows) acting as intermediate support.

On the flip side, momentum above session peak resistance near 0.8550 area now seems to confront immediate resistance near 0.8580 horizontal area, which if cleared could lift the cross back above 0.8600 handle towards testing its next resistance near 0.8620 level.