EUR/GBP Price Analysis: Subdued around 0.8330 amid a lack of catalyst

• The shared currency held its ground vs. sterling, around the 0.8300 mark, amid a dismal market mood.
• Global central bank tightening, keeps stocks down, weighing on sentiment.
• EUR/GBP Price Forecast: Forming a doji suggesting consolidation lies ahead.

The EUR/GBP is barely flat in the North American session, amid a gloomy market sentiment, spurred by a negative sentiment courtesy of continuing fighting between Russia-Ukraine, and continuing sanctions imposed on Russia. At the time of writing, the EUR/GBP is trading at 0.8338.

Risk appetite decreased on Wednesday as US equities remain trading in the red. The Federal Reserve revealed its minutes and said that it is ready to begin the Quantitative Tightening at the end of May. The amount to be reduced each month would be $95 billion, split into $80 billion of US Treasuries and $15  billion consisting of mortgage-backed-securities (MBS).

Aside from this, the EUR/GBP is subdued in a 30-pip range on Wednesday. In the European session dipped towards the S1 daily pivot around 0.8320 but jumped off the lows and reclaimed the daily pivot, lying at 0.8347. Nevertheless, of late, the EUR/GBP retreated towards the 0.8330s, where it meanders at press time.

EUR/GBP Price Analysis: Technical forecast

The EUR/GBP remains downward biased, but March 4 dip towards 0.8200 pierced the 200-month simple moving average (SMA), a significant support area, as shown by the candlestick formed -a hammer on a downtrend-, meaning that the downward move was finished. As a matter of fact, the cross-currency pair bounced off those levels and rallied towards 0.8450, but Russo-Ukraine woes weighed on the common currency.

Upwards, the EUR/GBP's first resistance would be the 50-day moving average (DMA) at 0.8366. A decisive break would expose the 100-DMA at 0.8396, followed by the 200-DMA at 0.8461. On the flipt side, the EUR/GBP first support would be 0.8327. A breach of the latter would expose March 24 swing low at 0.8264, followed by the YTD lows at 0.8202.

Technical levels to watch