Back
9 Jul 2015
EUR/GBP: Risks to 0.7280 above 0.7155
FXStreet (Guatemala) - EUR/GBP is currently trading at 0.7168 with a high of 0.7223 and a low of 0.7162.
EUR/GBP bears are in control again after the rally staged this week on to the 0.72 handle post opening on a bearish gap, but consolidation is now taking place here.
EUR/GBP fundamentals and Greece stalling
We are waiting for the Greek's proposals and the weekend events around them to determine we this is all heading. Meanwhile, The implications for the EUR are far from straight forward, as explained by Jane Foley, Senior Currency Strategist at Rabobank, "The fact that many investors have turned to Bunds as a safe haven has limited the downside pressure on the EUR. Some of these investors likely maintain the view that any breakdown of EMU would likely see core European countries retaining the EURwhich would then likely be stronger without its weakest members. This scenario is clearly not without many permutations and combination itself, though it is being widely touted as a reason for recent EUR resilience."
EUR/GBP technically holds key support
On a rebound Karen Jones, chief analyst at Commerzbank explained there was little beyond the 0.72 handle but notes that risks have increased for a challenge to the 0.7280, the 2015 resistance line. Dips should find initial support at 0.7185/55 ahead of the 0.7057 May low."
EUR/GBP bears are in control again after the rally staged this week on to the 0.72 handle post opening on a bearish gap, but consolidation is now taking place here.
EUR/GBP fundamentals and Greece stalling
We are waiting for the Greek's proposals and the weekend events around them to determine we this is all heading. Meanwhile, The implications for the EUR are far from straight forward, as explained by Jane Foley, Senior Currency Strategist at Rabobank, "The fact that many investors have turned to Bunds as a safe haven has limited the downside pressure on the EUR. Some of these investors likely maintain the view that any breakdown of EMU would likely see core European countries retaining the EURwhich would then likely be stronger without its weakest members. This scenario is clearly not without many permutations and combination itself, though it is being widely touted as a reason for recent EUR resilience."
EUR/GBP technically holds key support
On a rebound Karen Jones, chief analyst at Commerzbank explained there was little beyond the 0.72 handle but notes that risks have increased for a challenge to the 0.7280, the 2015 resistance line. Dips should find initial support at 0.7185/55 ahead of the 0.7057 May low."