EUR/GBP Price Analysis: Hovers around 0.8540s after bears reclaim the 200-DMA, though upside risks remain

• The shared currency gives way against the British pound, down some 0.43%.
• EUR/GBP Price Forecast: It has an upward bias, but as long as bears keep the spot under the 200-DMA, they are in charge.

The EUR/GBP retreats after printing a new eight-week high around 0.8598, down to 0.8540 during the New York session at the time of writing. Financial markets sentiment is downbeat, as shown by US equities recording losses, except for the Dow Jones Industrial, up some 0.11%. Factors like COVID-19 restrictions across Europe, particularly in Germany, Austria, Netherlands, and on Wednesday the UK, weighed on risk appetite as omicron infections rise, despite its recently reported mild symptoms.

The EUR/GBP pair remained subdued around 0.8570-0.8598 during the overnight session. However, through the mid-European session, it dropped below the bottom of the range, stopping between the 50 and the 100-hourly simple moving averages (SMA’s), at 0.8540. The downward move helps GBP bulls to reclaim the 200-day SMA lying at 0.8555.

At press time, the cross-currency pair has an upward bias, despite the fact of trading below the 200-DMA. If EUR bulls get a daily close above the 200-DMA, the first resistance would be 0.8600. A breach of the latter would send the pair upwards to the September 29 swing high at 0.8658, followed by the figure at 0.8700.

On the other hand, If GBP bulls want to reclaim control, they will need a daily close around the 100-DMA at 0.8511. Once that happens, the first support would be the December 7 swing low at 0.8488, followed by the 50-DMA at 0.8480.

EUR/GBP Daily chart