10 Aug 2015
EUR/GBP: attempting to break channel resistance
FXStreet (Guatemala) - EUR/GBP is currently trading at 0.7059 with a high of 0.7097 and a low of 0.7055.
EUR/GBP bulls have struggled at the top of the sideways channel with a lack of drivers at the start of the week for the cross. However, the pair is on the move again for a further attempt on the bid despite the hawkish rhetoric from Lockhart today.
From the weekend, Greek Finance Minister Tsakalotos and Economy Minister Stathakis were holding talks with the European Commission, IMF, ECB and the Eurozone's own bailout fund while they plan to strike a deal by August 20th to secure funds for an ECB repayment. A Greek official was quoted saying, "The agreement should be concluded comfortably by August 18th."
Looking ahead, the Euro area's Q2 GDP will be released on Friday 14th on the European calendar as the main take away for this week. Before then, the Euro Area June Industrial Production on Wednesday 12th August will also be in focus.
EUR/GBP continues to be weighed by the divergence between the ECB and BoE with sentiment for a rate hike to come from the BoE for sometime in 2016. Some analysts have even sighted as early as this year for a rate hike, despite Carney's less hawkish rhetoric on Super Thursday and the MPC voting count.
EUR/GBP: key support ahead of 0.6541 2007 low
Technically, the 0.6952/37 area is a robust support area and Karen Jones, chief analyst at Commerzbank suggested that this zone will act as the break down point to the 0.6541 2007 low. "A longer term negative bias is entrenched below the 2015 downtrend. It is currently located at 0.7172."
EUR/GBP bulls have struggled at the top of the sideways channel with a lack of drivers at the start of the week for the cross. However, the pair is on the move again for a further attempt on the bid despite the hawkish rhetoric from Lockhart today.
From the weekend, Greek Finance Minister Tsakalotos and Economy Minister Stathakis were holding talks with the European Commission, IMF, ECB and the Eurozone's own bailout fund while they plan to strike a deal by August 20th to secure funds for an ECB repayment. A Greek official was quoted saying, "The agreement should be concluded comfortably by August 18th."
Looking ahead, the Euro area's Q2 GDP will be released on Friday 14th on the European calendar as the main take away for this week. Before then, the Euro Area June Industrial Production on Wednesday 12th August will also be in focus.
EUR/GBP continues to be weighed by the divergence between the ECB and BoE with sentiment for a rate hike to come from the BoE for sometime in 2016. Some analysts have even sighted as early as this year for a rate hike, despite Carney's less hawkish rhetoric on Super Thursday and the MPC voting count.
EUR/GBP: key support ahead of 0.6541 2007 low
Technically, the 0.6952/37 area is a robust support area and Karen Jones, chief analyst at Commerzbank suggested that this zone will act as the break down point to the 0.6541 2007 low. "A longer term negative bias is entrenched below the 2015 downtrend. It is currently located at 0.7172."