- The euro regains some ground against the pound, rising 0.32%.
- EUR GBP Technical Outlook: The daily chart is biased to the downside as long as the 200 DMA and a downtrend line hold.
- EUR / GBP Technical Outlook: The 1 hour chart has a bullish bias, but would face stiff resistance around 0.8550.
The shared currency is moving higher, recovering from Friday’s losses, trading above 0.8549 during the New York session. Market sentiment remains pessimistic since the opening of Wall Street, as shown by losing European stock indices, while on the other side of the Atlantic, US indices fell between 0.71% and 1.55%.
In the European session, the United Kingdom reported the death of the first COVID-19 case linked to Ómicron, causing the change in the mood of the market. That led the pair to a move from 0.8500 to 0.8520 in the EUR / GBP currency pair as investors look to underperforming pairs as safe haven flows. The British pound continued to weaken against the euro in recent hours, although the pair will face stiff resistance around 0.8550.
EUR/GBP: Technical Perspective
Daily chart
From the perspective of the daily chart, the pair is still sloping lower, as long as the 200-day moving average (DMA) is respected. However, during today’s price action, the cross currency bounced off the 100 DMA at 0.8511, so EUR / GBP could be in range unless a catalyst drives the market.
To the upside, the first resistance would be the 200 DMA at 0.8555. If the 200 DMA gives way to the EUR bulls, then the next resistance would be a downtrend line traveling from April highs to July highs, around the 0.8575-95 area, followed by the 0.8600 figure.
On the other hand, the first support would be the 100 DMA at 0.8511. A breakout of that level would expose 0.8500, followed by the 50 DMA at 0.8480.
1 hour chart
On the one-hour chart, EUR / GBP is sloping higher, although it would face stiff resistance at a downtrend line traveling from the highs on December 9, passing around the 0.8550-60 area. In case of breaking to the upside, the first resistance would be 0.8588, followed by 0.8600.
On the other hand, the first support would be the 100 hourly SMA at 0.8541, followed by the 50 hour SMA at 0.8534 and then the 200 hour SMA at 0.8527.
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