EUR/GBP Price Analysis: Retreats from daily highs to 0.8320 amid increasing tensions in Ukraine

• On Monday, the EUR/GBP falls 0.13% during the day.
• Russian President Vladimir Putin’s recognition of Donetsk and Luhansk ad independent states worsened the market mood.
• EUR/GBP Technical Outlook: Downward biased, as sellers eye the YTD low at 0.8264.

The shared currency continued falling for the fourth consecutive day vs. the British pound during the North American session on Monday. At the time of writing, the EUR/GBP is trading at 0.8320, down 0.08%.

The market is in a risk-off mood, courtesy of increasing tensions in the Ukraine/Russia conflict. As of late, Russian President Vladimir Putin recognized the independence of the Donetsk and Luhansk in Ukraine’s East as independent states.

That said, global equity futures fall, led by Asian and European equity futures. At the same time, Gold is above the $1900 mark, while crude oil futures rise, with Brent and WTI. Each up close to 3%, sitting at $94.10 and $92.80.

In the overnight session for North American traders, the EUR/GBP reached a daily high at 0.8351. However, better than expected UK PMI’s alongside a dampened market mood weighed on the euro, pushing the pair towards lows 0.8300s.

EUR/GBP Price Forecast: Technical outlook

The EUR/GBP is downward biased from a technical perspective, as confirmed by the daily moving averages (DMAs) residing well above the exchange rate. On Monday, the EUR/GBP broke the bottom-trendline of a descending channel and eyes to break the January 28 daily low at 0.8305. The Relative Strength Index (RSI), an oscillator at 40 is aiming down, signals that EUR/GBP sellers have enough room to spare, to push the pair lower before reaching oversold conditions.

Therefore, the EUR/GBP first support would be January 28 daily low at 0.8305. Breach of the latter would expose 0.8300, followed by February 3 daily low at 0.8284, and then the 2017 April’s 17 daily high at 0.8117.