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    EUR/GBP re-takes 5-DMA post-EZ data Dhwani Mehta

    The EUR/GBP cross is seen making recovery attempts above 0.79 handle, and picks up pace following the release of upbeat Euro zone trade balance data.EUR/GBP bounces-off lows near 0.7890 Currently, the EUR/GBP pair now drops -0.28% to 0.7920moving further away from session lows struck at 0.7893 in the last hour. The EUR/GBP cross reversed a downward spike triggered by positive UK jobs data and now extends the rebound, after the euro received fresh impetus from a better-than expected Eurozone trade report. April 2016 Eurozone trade surplus increased to 27.5bn vs 26.0bn expected and 28.6bn last.However, the recovery looks fragile amid ongoing Brexit concerns and ahead of the Fed decision due later in the NA session. Calendar-wise, from the US docket, PPI indices for May are due later in the day, along with the Empire State Manufacturing Index.EUR/GBP Technical Levels    To the upside, the next resistance is located at 0.7973 (June 14 high) above which it could extend gains to 0.7987/0.8000 (Jun 13 High/ round number). To the downside immediate support might be located at 0.7882/78 (10-DMA/ daily S2) below that at 0.7833/08 (100 & 50-DMA).

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