EUR/GBP Price Analysis: Sellers in charge, eyeing a break of the 200-day EMA around 0.8340s

The EUR/GBP cross-currency tumbled since Tuesday close to 200 pips.
Fragile market mood shows investors’ nervousness in an uncertain scenario.
EUR/GBP Price Analysis: Pressured around the 200-day EMA; once cleared, a fall towards 0.8300 is on the cards.

Christian Borjon Valencia FXStreet

On Friday, the EUR/GBP trims some of Thursday’s losses, though braced for the confluence of the 100 and 200-day EMAs around 0.8440-44 during the North American session. At 0.8455, the EUR/GBP is up by a minimal 0.10%.

US equities wobble, reflecting a downbeat market mood. The EU’s energy crisis linked to Russia’s invasion of Ukraine, and signs of EU economic contagion or even contraction, weigh heavily in the shared currency, particularly in the EUR/GBP pair. Meanwhile, BoE’s Pill and Mann expressed the need for faster rate hikes in the UK amidst the resignation of UK’s Prime Minister Boris Johnson.

In the meantime, the cross-currency opened near 0.8445 and slid towards the daily low below 0.8440 before printing the daily high at 0.8475.

EUR/GBP Daily chart

The EUR/GBP is about to change its bias, due in part to fundamental reasons attached to a Euro area economic slowdown, but also for the presence of the 200-day EMA just 12 pips below the current exchange rate. The EUR/GBP fall from 0.8600 to current price levels shifted the Relative Strength Index (RSI) to bearish conditions, meaning that selling pressure lies ahead.

Therefore, the EUR/GBP bias in the near term is neutral but slightly tilted to the downside. Break below the 200-day EMA will expose the 0.8400 figure. Once cleared, EUR sellers’ next stop will be the May 2 swing low at 0.8367, followed by the 0.8300 figure.

EUR/GBP Key Technical Level

EUR/GBP

Overview
Today last price	0.8455
Today Daily Change	0.0009
Today Daily Change %	0.11
Today daily open	0.8448

Trends
Daily SMA20	0.8587
Daily SMA50	0.8537
Daily SMA100	0.8448
Daily SMA200	0.8445

Levels
Previous Daily High	0.8554
Previous Daily Low	0.8445
Previous Weekly High	0.8679
Previous Weekly Low	0.8551
Previous Monthly High	0.8721
Previous Monthly Low	0.8486
Daily Fibonacci 38.2%	0.8487
Daily Fibonacci 61.8%	0.8513
Daily Pivot Point S1	0.8411
Daily Pivot Point S2	0.8374
Daily Pivot Point S3	0.8302
Daily Pivot Point R1	0.852
Daily Pivot Point R2	0.8591
Daily Pivot Point R3	0.8629

Author

Christian Borjon Valencia

FXStreet

Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.

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