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EUR and GBP eyeing previous lows – InvestingBetter

FXStreet (Barcelona) - Alpesh Patel of InvestingBetter, shares the fundamental and technical outlook for EUR/USD and GBP/USD, viewing that the uncertainty relating to Greece and UK elections is set to keep the euro and sterling pressured.

Key Quotes

“From a fundamental point of view, most headlines have to do with the risk that Greece’s difficulty to repay their creditors poses to the stability of the Euro area. It is clear that most nations and institutions have far less risk exposure to Greece to what they used to have but nevertheless a possible Grexit would be a bad precedent for the European Union.”

“At the same time, over in the UK the possible outcome of the upcoming elections is this undecided adding to the uncertainty surrounding the region.”

“Taking a looking at the technical outlook of the major currencies, the Euro traded off its last week’s highs and is now in close proximity of the 1.0700 level. The sentiment is slowly turning lower and we believe that a clear break of the 1.0700 support floor could accelerate losses towards the 1.0600 lows’ area.”

“The Cable lost the important 1.4900 support level during yesterday’s price action but failed to move far lower than that during the rest of the day. The UK currency is trading just below the support barrier this morning and if momentum picks up then we should be looking towards the 1.4800 level as the next area of interest. We have no scheduled reports for the Cable today so any price action will mostly be dictated by Euro’s flows.”

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