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11 May 2015
EUR/GBP recovers losses
FXStreet (Mumbai) - The EUR/GBP pair recovered from the low of 0.7224 to trade at 0.7250 even though a deal between Greece and its creditors in highly unlikely at the Eurogroup meeting today.
EUR/GBP: Recovery capped on concerns Greece may default
The recovery in the pair stalled around 0.7250 after it was reported that EU officials are concerned over Greece’s ability to meet IMF payments. After the Euro group meeting, Greece faces a €750M payment deadline with the IMF on Tuesday.
Officials are apparently bracing themselves for the worst tomorrow – Greece fails to make payment. However, the markets seem less concerned for now as it is expected that an extension would be granted if Greece misses payment.
EUR/GBP Technical Levels
The immediate resistance is seen at 0.7259 (50-DMA), above which gains could be extended to 0.7296 (5-DMA). On the other hand, a break below 0.7224 could drive the pair down to 0.7162 (Apr. 16 low).
EUR/GBP: Recovery capped on concerns Greece may default
The recovery in the pair stalled around 0.7250 after it was reported that EU officials are concerned over Greece’s ability to meet IMF payments. After the Euro group meeting, Greece faces a €750M payment deadline with the IMF on Tuesday.
Officials are apparently bracing themselves for the worst tomorrow – Greece fails to make payment. However, the markets seem less concerned for now as it is expected that an extension would be granted if Greece misses payment.
EUR/GBP Technical Levels
The immediate resistance is seen at 0.7259 (50-DMA), above which gains could be extended to 0.7296 (5-DMA). On the other hand, a break below 0.7224 could drive the pair down to 0.7162 (Apr. 16 low).