Forex - GBP/USD rebounds as Greece vote looks doubtful

Published 11/03/2011, 08:11 AM
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Investing.com – The pound rebounded from a two-week low against the U.S. dollar on Thursday, tracking the euro higher as a planned referendum on Greece’s bailout deal was thrown into doubt amid speculation that the Greek government could collapse.

GBP/USD rebounded from 1.5875, the pair’s lowest since October 21, to hit 1.6022 during European early afternoon trade, gaining 0.46%.

Cable was likely to find support at 1.5753, the low of October 21 and resistance at 1.6047, Wednesday’s high.

Earlier in the day, Greek Finance Minister Evangelos Venizelos said he was opposed to the planned referendum. Meanwhile, speculation that the vote could be cancelled mounted, ahead of a vote of confidence in Prime Minister George Papandreou’s government on Friday.

The pound was almost unchanged earlier after slightly weaker-than-expected U.K. services sector data.

The Markit/CIPS Purchasing Managers' Index for the service sector slipped to 51.3 in October from 52.9 in September, falling short of expectations for a dip to 52.0.

The pound was almost unchanged against the euro, with EUR/GBP easing up 0.02% to hit 0.8623.

Later in the day, the European Central Bank was to hold its first policy setting meeting chaired by new head, Mario Draghi. Meanwhile, the U.S. was to produce its weekly report on initial jobless claims as well as a report on service sector activity from the Institute of Supply Management.

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