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9 Feb 2015
EUR/GBP: Downside risk mounting while below 0.7713/40
FXStreet (Guatemala) - EUR/GBP is attempting to hold off the bears and is supported at todays lows at 0.7412, marrying up and close to the Jan 25th lows at 0.7404.
Nevertheless, the pair is holding over the base of a 5 year down channel at 0.7386 while below 0.7385 would introduce scope to 0.7370 the 200 month ma then 0.7235/25 and inter-year pivot, as explained by Karen Jones, chief analyst at Commerzbank. "The market will remain directly offered below the 0.7713/67 region (October 2014 low)."
The major risks ahead this week for the cross comes in the situation around Greece with an emergency meeting talking place on Wednesday between Greek finance minister Yanis Varoufakis and the Eurogroup, while tensions still continue to mount over Russia and Ukraine on the political front also. The BoE's inflation report will then draw markets attention towards the end of the week.
Nevertheless, the pair is holding over the base of a 5 year down channel at 0.7386 while below 0.7385 would introduce scope to 0.7370 the 200 month ma then 0.7235/25 and inter-year pivot, as explained by Karen Jones, chief analyst at Commerzbank. "The market will remain directly offered below the 0.7713/67 region (October 2014 low)."
The major risks ahead this week for the cross comes in the situation around Greece with an emergency meeting talking place on Wednesday between Greek finance minister Yanis Varoufakis and the Eurogroup, while tensions still continue to mount over Russia and Ukraine on the political front also. The BoE's inflation report will then draw markets attention towards the end of the week.