FXStreet (Mumbai) – EUR/GBP remains heavily sold-off in the early Asian moves, struggling below 0.7100, as the European currency was broadly offered after Greece rejected bailout which heightened risks of Grexit and ECB bankruptcy which dampened the sentiment around the Euroland.
EUR/GBP rejected at 0.71 handle
Currently, the EUR/GBP pair trades -0.77% lower at 0.7085, attempting a modest recovery from 0.7056 lowest. The cross in EUR/GBP remains deep in red as risk-off moods resurfaced in the markets after the Greeks voted ‘NO’ to the austerity measures offered by its international creditors, the referendum results showed early today.
A No vote implies the ECB will cancel Greek bank funding which then hastens a Grexit. Greek Prime Minister Alexis Tsipras is reportedly holding an emergency meeting on banking sector liquidity on Monday.
German Chancellor Angela Merkel will travel to Paris on Monday to discuss the situation after the Greek plebiscite with French President Francois Hollande, German government spokesman Steffen Seibert said on Sunday.
While on the other hand, the pound started the week on a softer note amid generalized risk-off trades as traders now await a slew of UK economic releases later this week while BOE monetary policy decision will remain the main highlight.
EUR/GBP Technical Levels
To the upside, the next resistance is located at 0.7100 levels and above which it could extend gains 0.7147 (June 30 High) levels. To the downside immediate support might be located at 0.7056 (July 5 Low) below that at 0.6981 (June 29 Low) levels.
(Market News Provided by FXstreet)