Forex: EUR/GBP rises to 0.8544 after headline on Cyprus

FXstreet.com (Barcelona) - The EUR/GBP is extending daily gains as investors price in greater expectations of a solution for Cyprus after the Cypriot ruling party saying they are confident that the country will achieve a bailout deal within EU framework over the next hours. The cross hit a high at 0.8544.

The market was able to hold the downside at the 0.8500 psychological level, with a brief passage through 0.8585 low. Also on the ropes is the meeting between Bersani and the Italian President where he should be asked to form a government. Bersani says he will not do it with Berlusconi and Grillo has rejected any coalition with any of the main parties.

“We continue to believe that EUR/GBP is forming a top. Resistance is seen at Friday’s 0.8603 low. Further resistance comes in at 0.8683/84 (February 13 and March 1 highs) and more significant resistance at 0.8715, the February 1 high”, wrote Commerzbank analyst Karen Jones, pointing to immediate downside pressure while below there. While below here immediate downside pressure should be maintained.