EUR/GBP: testing a significant downside area on the Greek news

Currently, EUR/GBP is trading at 0.8681, down -0.14% on the day, having posted a daily high at 0.8700 and low at 0.8678.

EUR/GBP dropped on the Greek news with EUR/USD dropping quickly. However, weakness in sterling after the UK election debate televised in early Asia is supporting the cross to some extent. The markets are somewhat cautious around the elections due to a narrowing margin that the Conservates are leading by. 

Greece threatens to opt out of next bailout payment without a debt deal - Bild

Meanwhile, the European and overnight sessions were quiet with a due holiday both in the UK and US. However, Draghi was the focus when speaking and analysts at Westpac offered the detail: "ECB President Draghi said the economy still needs extraordinary support from monetary policy, including that via the ECB’s forward guidance. Wage inflation remained too soft to support a general inflation rise towards target. It sounds like the senior echelon is pushing back against a drastic change of stance at the forthcoming June meeting."

EUR/GBP levels

EUR/GBP is now moving into bearish territory and has just crossed a significant level according to analysts at Commerzbank:

"EUR/GBP has extended gains through the 2017 channel at 0.8706. We are extremely cautious and we suspect that this is a false break and loss of the accelerated uptrend at 0.8672 will add weight to that view. Last week's low at 0.8524 guards the 0.8383 May low and failure here will retarget key support at 0.8334/04. If slipped through, the 0.8252 the July 2016 low would be in focus."