EUR/GBP: consolidating the bearish gap on Greece

FXStreet (Guatemala) – EUR/GBP is currently trading at 0.7094 with a high of 0.7097 and a low of 0.6987.

EUR/GBP has closed the bearish opening gap that was made when Asia opened post the Greek debacle over the weekend with Athens calling for a referendum. EUR/GBP dropped to the 0.7000 handle and the 0.6985 6 year down channel support area where the cross has since recovered from. We are back up close to a cent around the 0.7080 resistance line and entering a consolidation phase at this point.

Meanwhile, the door is till open for Greece to come back to the negotiating table as said by Dijsselbloem earlier on in the European session. Markets are jittery and there is a great deal of uncertainty of whether the Greeks will ever get to the referendum before things change again this week, and a week is along time in politics, or what the outcome of a no or yes vote would be and subsequent ramifications of either or for the EZ and financial markets.

There is a great deal of tension around what this could all mean for the euro-bloc nations as well, with the British conservatives campaigning for a referendum on the eurozone and whispers of even France debating what is best for their nation also. Barack Obama was reported being on the telephone to German chancellor Angela Merkel over the weekend and the US Treasury Secretary, Jack Lew, has urged debt relief for Greece, fearful of a Lehman Brothers type of catastrophe in European markets.

Technically, for the cross, on further slides on bad eurozone news, the support has been identified on aforementioned levels, but a slip below here could target 0.6571/41 2007 lows as the bloc currency vs the greenback eyes the May lows of 1.0820.

EUR/GBP is currently trading at 0.7094 with a high of 0.7097 and a low of 0.6987.

(Market News Provided by FXstreet)