30 Jul 2015
EUR/GBP: recovery attempts failing before 0.7206 downtrend
FXStreet (Guatemala) - EUR/GBP is currently trading at 0.7004 with a high of 0.7050 and a low of 0.6985.
EUR/GBP had been rejected by the 55 day ma at 0.7143 on 27th Jul and has been offered since. Today, EUR/GBP has dropped back from the 0.71 handle and fallen through 0.7020 support targeting July's lows 0.6932.
European stocks were performing with modest gains, but EUR/USD has been offered through 1.1000, which is weighing on the cross as Sterling has been performing well vs the US dollar still, maintaining its recovery position from the July lows of 1.5328 although capped at 1.5680 on rallies. However, near term, the price action in cable has been negative and dropping through the 1.56 handle which offers the cross some immediate support.
EUR/GBP bearish bias towards 2007 lows
The US dollar has taken the spotlight off European markets with the GDP missing expectations today, but 2.3% vs 2.5% is not as poor as Q1 and that leaves the cross trading in between with a bearish bias below 0.7040 within the broader downtrend. However, on a wider range, a negative bias is entrenched below the 2015 downtrend at 0.7206. Technically further losses, the 6 year down channel at 0.6937/67 zone may be critical support again ahead of 0.6571/41 the 2007 low.
Meanwhile, it has been reported in the FT the IMF cannot join the Greek bailout.
EUR/GBP had been rejected by the 55 day ma at 0.7143 on 27th Jul and has been offered since. Today, EUR/GBP has dropped back from the 0.71 handle and fallen through 0.7020 support targeting July's lows 0.6932.
European stocks were performing with modest gains, but EUR/USD has been offered through 1.1000, which is weighing on the cross as Sterling has been performing well vs the US dollar still, maintaining its recovery position from the July lows of 1.5328 although capped at 1.5680 on rallies. However, near term, the price action in cable has been negative and dropping through the 1.56 handle which offers the cross some immediate support.
EUR/GBP bearish bias towards 2007 lows
The US dollar has taken the spotlight off European markets with the GDP missing expectations today, but 2.3% vs 2.5% is not as poor as Q1 and that leaves the cross trading in between with a bearish bias below 0.7040 within the broader downtrend. However, on a wider range, a negative bias is entrenched below the 2015 downtrend at 0.7206. Technically further losses, the 6 year down channel at 0.6937/67 zone may be critical support again ahead of 0.6571/41 the 2007 low.
Meanwhile, it has been reported in the FT the IMF cannot join the Greek bailout.