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Forex pairs in this Article » EUR/GBP
Fxstreet.com (Edinburgh) - The EUR/GBP is extending its correction off lows around 0.8470 on Wednesday, managing to climb to the current area of 0.8480/90.

EUR/GBP upside remains capped by 0.8500

According to Melinda Burgess, FX Strategist at RBS, the pair “drifted higher last week but still remains within a relatively tight range. The correlation of EUR/GBP with the S&P 500 has loosened sharply and rate spreads are the more dominant driver of the pair. Still, with worries over the political situation and bailout concerns in Greece re-surfacing, the EUR may start to become more sensitive to Euro-zone news. We remain watchful of the movements in Euro area periphery yields”. The pair is now reflecting the deeper correction of the sterling, in contrast with the resilience of the shared currency around the key level at 1.3000.

EUR/GBP levels to watch

As of writing the pair is up 0.09% at 0.8485 with the next hurdle at 0.8512 (high Jun.25) ahead of 0.8542 (high Jun.24) and then 0.8552 (high Jun.21). On the flip side, a breakdown of 0.8470 (low Jun.26) would expose 0.8464 (low Jun.12) and finally 0.8441 (low May 21).
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