- The common currency gives way against the British pound, with a fall of more than 0.40%.
The EUR / GBP pulls back after hitting a fresh eight-week high around 0.8598, falling towards 0.8540 during the American session on Thursday. Financial markets sentiment is pessimisticAs evidenced by losing US equities, with the exception of the Dow Jones which is up about 0.11%. Factors such as COVID-19 restrictions across Europe, particularly in Germany, Austria, the Netherlands and the UK on Wednesday weighed on risk appetite as Omicron infections increase, despite her recently reported mild symptoms.
The EUR / GBP pair remained subdued around 0.8570-0.8598 during the Asian session. However, throughout the European session, it fell below the range, stopping between the 50 and 100 hourly simple moving averages at 0.8540. The downside move helps GBP bulls regain the 200-day SMA that is at 0.8555.
At the time of writing, the currency pair has an upward bias, despite the fact of trading below the 200-day SMA. If the EUR bulls hit a daily close above the 200-day SMA, the first resistance would be at 0.8600. A breakout of this level would send the pair higher to the September 29 high at 0.8658, followed by the 0.8700.
On the other hand, if the bulls at the 100-day SMA in 0.8511. Once that happens, the first support would be the December 7 low at 0.8488, followed by the 50-day SMA at 0.8480.
EUR / GBP daily chart
EUR / GBP technical levels
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