Current trend

Amid the recent events, yesterday, the euro reached an eight-year low against the pound.

The Greek parliament passed austerity measures needed to secure a €86bn bailout. The Eurogroup approved the first 7-billion-euro bridge-loan, reports Bloomberg, citing informed resources.

Yesterday's EU economic indicators remained almost unchanged from the previous month, which had no positive effect on the euro. ECB rate decision also stayed the same. Moreover, amid expectations of a rate hike by the Bank of England, the demand for the GBP is growing.

This week, Mark Carney stated that the UK economy goes in the right direction and gradually improves, but deflation, at the same time, acts as a counter-balance.

Today, the EU Construction Production Index is released. The figures are unlikely to change significantly, so the volatility in the market will be at the average level.

Support and resistance

The nearest resistance level is 0.7045 — the resistance level of the MA with 110 period.

The nearest support level is 0.6875 — the resistance level in March 2007.

Trading tips

Open short positions from 0.6967 with the target at 0.6875 and stop-loss at 0.7045. The consolidation above 0.7000 is a signal to close positions.

EUR/GBP: general analysis

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