- The shared currency finishes in the green the week, contrary to the risk-sensitive cable.
- The EUR/GBP rallied almost 50-pips as the US Nonfarm Payrolls report headline crossed the wires.
- In the EUR/GBP daily chart, the break of the 200-DMA would expose 0.8657.
The EUR/GBP rallies during the New York session, up some %, trading at 0.8542 at the time of writing. Market sentiment is pessimistic after a mixed US Nonfarm Payrolls report, as the US central bank looks forward to increasing the pace of the bond taper. Also, in the last couple of hours, an increment of COVID-19 infections with the Omicron variant appears to weigh investors’ moods as safe-haven currencies rise.
On Friday, during the overnight session, the EUR/GBP pair remained subdued, within December 2 low at 0.8488, and the daily central pivot at 0.8501. However, volatility shot through the roof as the American session began, and the EUR/GBP rose towards 0.8547. At press time, it appears the pair might consolidate around the 0.8500, also benefitted from the “safe-haven” status gained lately, on the low-yield EUR.
EUR/GBP Price Forecast: Technical outlook
The EUR/GBP daily chart shows that the cross-currency pair is approaching the 200-day moving average (DMA), sitting at 0.8557, which would see a level that GBP bulls would lean-to in their attempt to push the EUR/GBP pair lower. However, in breaking the latter, the first resistance would be the November 5 swing high at 0.8594, followed by the September 29 high at 0.8657.
Conversely, if the EUR/GBP upward move is faded at the 200-DMA, the first support would be the 100-DMA at 0.8514. A breach of that level could send the pair tumbling down to the 50-DMA at 0.8484, followed by the psychological 0.8400 support.
-637741524569502028.png)
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD alternates gains with losses near 1.0720 post-US PCE
The bullish tone in the Greenback motivates EUR/USD to maintain its daily range in the low 1.070s in the wake of firmer-than-estimated US inflation data measured by the PCE.
GBP/USD clings to gains just above 1.2500 on US PCE
GBP/USD keeps its uptrend unchanged and navigates the area beyond 1.2500 the figure amidst slight gains in the US Dollar following the release of US inflation tracked by the PCE.
Gold keeps its daily gains near $2,350 following US inflation
Gold prices maintain their constructive bias around $2,350 after US inflation data gauged by the PCE surpassed consensus in March and US yields trade with slight losses following recent peaks.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.