13 Jul 2015
EUR/GBP drops over 1%, challenges 0.7100
FXStreet (Mumbai) - The re-emergence of risk-on moods on Greek deal during the European session posed a double whammy for EUR/GBP cross as the pound benefitted from risk-on flows while the European currency gave back initial Greek deal gains and fell deep in red as uncertainty around Greek parliament vote weighs.
EUR/GBP drops nearly 100 pips
Currently, the EUR/GBP pair trades -1.08% lower at 0.7111, testing 0.71 barrier. The cross in EUR/GBP witnessed steep losses after the European currency was heavily sold-off after Greek deal backed optimism fizzled out as trader weighed tough times ahead of Greece in terms of Greek parliament vote and reforms implementation in exchange for the financial aid.
The government in Athens has to pass four sweeping reform bills by Wednesday and two more by July 22, the final Euro Summit statement confirmed on Monday.
On the other hand, strengthening GBP/USD amid risk-on flows returning to markets also added to the downside in EUR/GBP. Meanwhile markets now await ECB ELA decision for further momentum on the cross.
EUR/GBP Technical Levels
To the upside, the next resistance is located at 0.7200 levels and above which it could extend gains 0.7224 (July 8 High) levels. To the downside immediate support might be located at 0.7100 below that at 0.7056 (July 5 Low) levels.
EUR/GBP drops nearly 100 pips
Currently, the EUR/GBP pair trades -1.08% lower at 0.7111, testing 0.71 barrier. The cross in EUR/GBP witnessed steep losses after the European currency was heavily sold-off after Greek deal backed optimism fizzled out as trader weighed tough times ahead of Greece in terms of Greek parliament vote and reforms implementation in exchange for the financial aid.
The government in Athens has to pass four sweeping reform bills by Wednesday and two more by July 22, the final Euro Summit statement confirmed on Monday.
On the other hand, strengthening GBP/USD amid risk-on flows returning to markets also added to the downside in EUR/GBP. Meanwhile markets now await ECB ELA decision for further momentum on the cross.
EUR/GBP Technical Levels
To the upside, the next resistance is located at 0.7200 levels and above which it could extend gains 0.7224 (July 8 High) levels. To the downside immediate support might be located at 0.7100 below that at 0.7056 (July 5 Low) levels.