8 May 2015
EUR/GBP deep in red below 0.7250 – at fresh weekly lows
FXStreet (Mumbai) - The British pound rammed through the shared currency in the mid-Asian session; leaving EUR/GBP bleeding below 0.7250, as sterling remains boosted after the first exit polls indicated a sweeping victory for the Conservatives while markets await for the final count to confirm the same.
EUR/GBP breaches 50-DMA
Currently, the EUR/GBP cross trades -2% lower at fresh weekly lows at 0.7238, finally breaching the key 50-DMA support located at 0.7258. The cross in EUR/GBP accelerated losses largely as the pound shot higher across the board after an exit poll and early results showed incumbent British Prime Minister David Cameron set to win a large share of seats in Britain's general election.
Under such a scenario where Cameron wins, the UK will most likely see an in-out referendum on its membership of the EU, given Cameron's promise to his voters that his party would hold the plebiscite sometime around 2017.
On the other hand, persistent weakness seen in EUR/USD also exacerbated the pain in the EUR/GBP cross.
EUR/GBP Levels to consider
To the upside, the next resistance is located at 0.7300 and above which it could extend gains to at 0.7364 (5-DMA) levels. To the downside immediate support might be located at 0.7200 levels below that at 0.7185 (April 30 Low) levels.
EUR/GBP breaches 50-DMA
Currently, the EUR/GBP cross trades -2% lower at fresh weekly lows at 0.7238, finally breaching the key 50-DMA support located at 0.7258. The cross in EUR/GBP accelerated losses largely as the pound shot higher across the board after an exit poll and early results showed incumbent British Prime Minister David Cameron set to win a large share of seats in Britain's general election.
Under such a scenario where Cameron wins, the UK will most likely see an in-out referendum on its membership of the EU, given Cameron's promise to his voters that his party would hold the plebiscite sometime around 2017.
On the other hand, persistent weakness seen in EUR/USD also exacerbated the pain in the EUR/GBP cross.
EUR/GBP Levels to consider
To the upside, the next resistance is located at 0.7300 and above which it could extend gains to at 0.7364 (5-DMA) levels. To the downside immediate support might be located at 0.7200 levels below that at 0.7185 (April 30 Low) levels.