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22 Mar 2013
Forex: EUR/GBP rises to 0.8544 after headline on Cyprus
FXstreet.com (Barcelona) - The EUR/GBP is extending daily gains as investors price in greater expectations of a solution for Cyprus after the Cypriot ruling party saying they are confident that the country will achieve a bailout deal within EU framework over the next hours. The cross hit a high at 0.8544.
The market was able to hold the downside at the 0.8500 psychological level, with a brief passage through 0.8585 low. Also on the ropes is the meeting between Bersani and the Italian President where he should be asked to form a government. Bersani says he will not do it with Berlusconi and Grillo has rejected any coalition with any of the main parties.
“We continue to believe that EUR/GBP is forming a top. Resistance is seen at Friday’s 0.8603 low. Further resistance comes in at 0.8683/84 (February 13 and March 1 highs) and more significant resistance at 0.8715, the February 1 high”, wrote Commerzbank analyst Karen Jones, pointing to immediate downside pressure while below there. While below here immediate downside pressure should be maintained.
The market was able to hold the downside at the 0.8500 psychological level, with a brief passage through 0.8585 low. Also on the ropes is the meeting between Bersani and the Italian President where he should be asked to form a government. Bersani says he will not do it with Berlusconi and Grillo has rejected any coalition with any of the main parties.
“We continue to believe that EUR/GBP is forming a top. Resistance is seen at Friday’s 0.8603 low. Further resistance comes in at 0.8683/84 (February 13 and March 1 highs) and more significant resistance at 0.8715, the February 1 high”, wrote Commerzbank analyst Karen Jones, pointing to immediate downside pressure while below there. While below here immediate downside pressure should be maintained.