EUR/GBP jumps off 2022 YTD lows, steady around 0.8360
|- The EUR/GBP advances during the North American session, up some 0.18%.
- Eurozone inflation rose more than expected, breaking the 5% threshold.
- EUR/GBP Technical outlook: Bearish biased as long as it remains below 0.8500.
The shared currency rises for the third day in a row against the British pound, on higher than expected Eurozone inflation figures. The EUR/GBP is trading at 0.8361 during the North American session at press time.
Eurozone HICP Flash for December rises above the 5% threshold
On Friday, during the overnight session for North American traders, the Eurozone economic docket featured inflation figures. The HICP Flash for December on an annual basis rose by 5.0%, higher than the 4.7% estimated by analysts. The jump in the figure is attributed to high energy prices, rising 26%, compared to 2021. However, increases for food, services, and imported goods were also above the European Central Bank’s target of 2%.
EUR/GBP Price Forecast: Technical outlook
The EUR/GBP portrays its inability to break under the YTD low at 0.8335 two times, one in Friday’s session. Nevertheless, the daily moving averages (DMAs) position 90-pips above the spot price, confirming the downward bias in the pair.
The EUR/GBP first resistance would be a resistance trendline drawn from January 5 highs, which confluences near the R1 daily pivot point around the 0.8366-72 region. A breach of that area would expose the 200-hour SMA at 0.8380, followed by the R2 daily pivot at 0.8386.
On the other hand, EUR/GBP’s first support level would be the 100-hour SMA at 0.8356, once broken would expose the 50-hour SMA at 0.8350, followed by the S1 daily pivot at 0.8334.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.