• The EUR/GBP hits four-week highs just shy of 0.8460, up 0.62% on Tuesday.
  • The British pound remains battered as the GBP/USD breaks below 1.2600.
  • EUR/GBP Price Forecast: It is neutral biased, but a daily close above the 200-DMA would further cement the case for a shift in the trend.

The EUR/GBP surged to four-week new highs around 0.8458 on Tuesday, amid a risk-off market sentiment, which sent the British pound tumbling across the board, losing 0.61% vs. the euro, and 1% against the greenback. At the time of writing, the EUR/GBP is trading at 0.8453.

Risk-aversion keeps the GBP as the laggard in the FX space

European and US equities are still on the back foot, trading with losses. The recent China coronavirus outbreak in Shanghai, which extended to Beijing and Mongolia, keeps investors on their toes because, based on China's Covid-19 zero-tolerance, it could trigger another raft of inflation courtesy of supply chain disruptions. Also, escalations in the Ukraine-Russia conflict summed up the dismal market mood.

On Tuesday, the EUR/GBP opened around the 0.8400 figure in the Asian session. However, as European traders took over, the GBP weakened, sending the EUR/GBP rallying from 0.8393 to 0.8456.

EUR/GBP Price Forecast: Technical outlook

The EUR/GBP remains neutral biased. However, it is trading above the 200-day moving average (DMA), which lies at 0.8445, signaling that the bias will shift to neutral-bullish if a daily close above the latter is achieved. A break above 0.8512 would shift the bias to bullish, but solid resistance lies ahead. It is worth noting that the EUR/GBP upside in the last three trading sessions caused a jump in the Relative Strength Index (RSI), but at 64.66, it would provide some upward room for the EUR/GBP if bulls attempt to push prices higher.

With that said, the EUR/GBP's first resistance would be the February 7 daily high at 0.8478. A breach of the latter would expose the 0.8500 figure. Once cleared, the next resistance would be the 1-year-old downslope trendline lying around the 0.8535-50 area.

EUR/GBP

Overview
Today last price 0.8453
Today Daily Change 0.0048
Today Daily Change % 0.57
Today daily open 0.8407
 
Trends
Daily SMA20 0.8354
Daily SMA50 0.8354
Daily SMA100 0.8383
Daily SMA200 0.845
 
Levels
Previous Daily High 0.8441
Previous Daily Low 0.8397
Previous Weekly High 0.8416
Previous Weekly Low 0.8272
Previous Monthly High 0.8512
Previous Monthly Low 0.8203
Daily Fibonacci 38.2% 0.8414
Daily Fibonacci 61.8% 0.8424
Daily Pivot Point S1 0.8389
Daily Pivot Point S2 0.8371
Daily Pivot Point S3 0.8345
Daily Pivot Point R1 0.8433
Daily Pivot Point R2 0.8459
Daily Pivot Point R3 0.8477

 

 

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