8 May 2015
EUR/GBP keeps losses circa 0.7250
FXStreet (Mumbai) - The British pound continues to pressure the shared currency in the early European trades; keeping EUR/GBP in deep losses on the 0.72 handle, as Tories likely win ahead of the final UK elections outcome gives sterling a boost.
EUR/GBP in red below 50-DMA
Currently, the EUR/GBP cross trades nearly -2% lower at 0.7247, recovering from fresh weekly lows reached at 0.7226. The cross in EUR/GBP remains deep in red as the pound continues to remain underpinned in anticipation of Conservatives Party win as the ongoing final vote count almost shows a clear victory by a majority.
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.
Meanwhile, EUR/USD remains weak retesting 1.12 barrier on a stronger dollar following US employment numbers released yesterday.
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 in red below 50-DMA
Currently, the EUR/GBP cross trades nearly -2% lower at 0.7247, recovering from fresh weekly lows reached at 0.7226. The cross in EUR/GBP remains deep in red as the pound continues to remain underpinned in anticipation of Conservatives Party win as the ongoing final vote count almost shows a clear victory by a majority.
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.
Meanwhile, EUR/USD remains weak retesting 1.12 barrier on a stronger dollar following US employment numbers released yesterday.
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.