Forex Alert: EUR/GBP

on Nov 13, 2012
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The EUR/GBP is currently trading below 0.8000 having steadily declined from yesterday’s high of 0.8020. The drop is a result of the lack of clarity over the Greek bailout situation following the Eurogroup meeting on Monday.

As the opening bell for stock markets in Europe rang, stocks opened sharply lower and the EUR/GBP plunged after them in sympathy, declining to its current trading levels of 0.7992 or 0.14 percent lower. If it drops below 0.7959 the pair will target the 0.7922 support first. If it breaks the 0.7922 mark it will be a confirmation that the rebound from 0.7755 has finished and the downward slide will continue to a new low.

If the mood turns bullish there is a 0.8030 mark to be broken and a serious resistance at 0.8164.
As expected the Eurogroup meeting yesterday did not result in an agreement to deliver Greece its next batch of rescue funds. At the same time for the past month UK data flow has been very poor with a series of disappointments in November including construction confidence, manufacturing confidence, retail sales and industrial production. The Bank of England announced it is halting its quantitative easing programme and won’t be injecting any additional cash for now.
According to Fxstreet, the analysts at Danske Bank see this pair as a sell from 0.8131 with a target of 0.7923 and a stop at 0.8081.

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