Why EUR/GBP trading down jan 27 2012

forex trading outlook today - Why EUR/GBP trading down jan 27 2012 : The Euro has just fell against the Pound once news from the Portuguese bond market came out. The 10-year bond yield has hit a new high at 15.25%, with investors growing their concerns on a possible contagion.

Many analysts believe Portugal will need a second bailout. Meanwhile, the markets expects to hear from Greece's deal with private-sector creditors soon. At the moment of writing, the EUR/GBP retraced to 0.8343 after falling to 0.8337.

"The generally 'wedge like' chart pattern developing is negative and we maintain our bearish bias. A close below 0.8315 is needed to complete the wedge", says Commerzbank analyst Karen Jones, pointing to further supports at 0.8255/0.8211, followed by 0.8172. On the upside 0.8393, 0.8421 and 0.8426/45 would be resistances

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