The pair settled little changed in what was generally another volatile session as market participants continued to digest comments relating to Greece, which seeks to renegotiate certain bailout terms at some point later in the year. Also, the ongoing speculation of an outright bailout of Spain supported the price action in the fixed income market and also in the FX market. In terms of technical levels, supports are seen at 1.2400, 1.2342 and then at 1.2295. On the other hand, resistance levels are seen at 1.2488, 1.2500 and then at 1.2516.
The pair finished higher and to a degree benefited from the uncertainty surrounding the Greek bailout, as well as whether or not Spain will some sort of bailout. There was little in terms of UK specific macro economic commentary and instead the price action was very much flow driven. In terms of technical levels, supports are seen at 1.5765/06 and then at 1.5678. On the other hand, resistance levels are seen at 1.5850/63 and then at 1.5889.
The pair settled lower as market participants remained wary of risks of what looks like an inevitable bailout of Spain. Still, even though bond yields continue to fall, the country has given no firm indications that it will request formal assistance which may lead to a sharp reversal in risk assets should it become apparent that no bailout will take place.