Archived IMT (2009.07.27)

EURGBP gradual strengthening over the past 4 weeks reflects the broadening stability in EUR and deepening weakness in GBP. The cross has yet to regain the 0.8735 resistance to shake off any remaining doubters with recent rally. For now, the 2-year trend line support at 0.84 remains valid, while a figure above 0.95 isnt in the cards until Q4. EURCHF remains consolidative in its 1.51-1.5350 range, with the SNB propping the 1.51 line. Yet, the market remains unable to extend risk-seeking trades beyond 1.5350. Range-bound traders continue to find stability in the cross.