EUR/GBP rebounded after trading momentarily below 0.8500. The pair bottomed at 0.8490, hitting the lowest level in two days but then bounced to the upside, climbing back above 0.8550.The pair peaked during the American session at 0.8570 and it was trading at 0.8560. The rally from the lows improved significantly the intraday tone. Still it is having worst performance since June 28.In the political area, pro-Brexit candidate Micheal Gove was eliminated from the contest for the leadership of the Conservative Party and the battle will be between Theresa May and Andrea Leadsom.EUR/GBP: near-term technical outlook“Momentum studies, on a near term basis, suggest there is some scope for a pullback. 0.8450 represents the first level of resistance in this regard, and a move through here opens up 0.8390/50”, said analysts from Lloyds Bank.According to them a break below 0.8390/50 may provide may lead to a test of the 0.8150/0.8050 region.