Forex: EUR/GBP plunges on bailout funds skepticism

FXstreet.com (Barcelona) - A strong EUR/GBP, attempting to breach the 0.8600 level, switched to a bearish pair that is plunging down across the board with no stopping to it, at the moment. From a daily high of 0.8613, the cross broke down on news of a senior German official’s skepticism on the possibility of two different rescue funds (EFSF and ESM) running together in the EU.

Previously, the National Statistics published its Manufacturing and Industrial Production data, indicating below expected results in every chapter. Industrial Production (YoY) fell 1.7%, a worse scenario than expected -0.7%.
German Industrial Production (YoY) was also released during the European morning, stating a growth by 4.7%, above the expected 3.5% rise.

At the moment of writing, the broken pair is quoting at 0.8570, after reaching 0.8654 daily low. Mataf.net analysts expect supports at 0.8565 and 0.8545. On the upside, resistances should be positioned at 0.8610, followed by 0.8620 and 0.8665.

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