EURGBP takes an important step through 0.7000
It's a great feeling when you wait and wait for a currency to make up its mind at a big level and it then it goes in your favour
For me it's a feeling of relief rather than triumph and that's been the case with EURGBP
The cross made a hard fight of the 0.7000 level. It quickly reversed the break on the 29th and managed a spirited bounce to 0.7200+
The break is looking more solid this time with the level not showing any signs of putting up a fight. Since yesterday we've gradually moved below and allowed resistance to build around 0.7000/10
EURGBP weekly chart
The door is now wide open for a decent move lower and it's up to shorts to take advantage and go through it
Carney's comments have given the pound bulls something extra to cling on to and the stark divergence in policies will keep the cross going south
I'm looking for a move now towards 0.6530/35 but have noted possible support around the Sep-Nov 2007 range and then the Mar-Sep 2007 range, so I'll be watching the 0.6900/10, 0.6870/80, 0.6730/40 & 0.6700/10 levels for signs of support
One thing to note for pound traders today is that Mark Carney is on one of his regional visits tonight. He's speaking in Lincoln at the Magna Carter Lecture from 18.00gmt. Given the nature of the event it's very doubtful that he'll say anything to cause any shocks but be alert in case he does trying to reverse his comments from the Treasury Committee hearing
