FXstreet.com (Barcelona) - The EUR/GBP is repeatedly testing the 0.9000 support barrier at the opening of today's European session.
The EUR/GBP started the session falling from the opening price of 0.9012, down to 0.9005, before being rejected and recovering ground up to an early European session-high of 0.9015. The rebound was short lived, however, as the par pushed downwards to the 0.9000 mark before again being falling to break the support.
The par is currently flirting with the 0.9005 at the time of writing.
The EUR/GBP has gained over 160 pips over the past week of trading (up from Dec.18 low of 0.8857 to Dec. 24 high at .9018) and the bullish trend is expected to continue, according to FXMarketAlerts:
The pound is trading at 1.10 against the euro after hitting a low of 1.02 a year ago. However, currency markets are reflecting the expectation of a win for the Conservatives in next year's election, raising hopes of tougher action to tackle the deficit. On FX, good to watch UK Politics, deficit, though interest still to sell EUR/GBP on rallies to 0.9030-50, now 0.9008-11, bids at 0.8950. GBP at 1.5962-66, offers at 1.6000.