- The EUR/GBP pair began the week on the wrong foot, losing 1%.
- Tensions increased between Russia and Ukraine on Bucha developments and Western war crimes accusations against Russia.
- EUR/GBP Price Forecast: Aiming towards the YTD low, but upside risks remain.
EUR/GBP begins the Asian Pacific session barely flat, around 0.8339, after Tuesday’s fall below the 50-day moving average (DMA) at 0.8366, pushing the pair towards a descending channel’s bottom-trendline. At the time of writing, the EUR/GBP is trading at 0.8340, down 0.01%.
The EUR/GBP pair is down in the week, so far 1%. The fall in the cross-currency is courtesy of the Ukraine-Russia conflict, which aims to extend not for another week but instead for months. The findings of civilians bodies in Bucha, and accusations of war crimes against Russia, deteriorated peace talks discussions between the parties involved.
Overnight, the EUR/GBP pair seesawed around the 0.8370s area but fell once the European traders got to their desks and reached a daily low at 0.8328.
EUR/GBP Price Forecast: Technical outlook
The EUR/GBP is trading near the bottom of a descending channel and found support near the 0.8320s area, which once hit, the pair jumped to current levels. Nevertheless, the Relative Strength Index (RSI) at 45.75, in a bearish area, and the daily moving averages (DMAs) above the spot price, keep the EUR/GBP downtrend intact, but upside risks remain.
That said, the EUR/GBP’s first support would be March 23 swing low at 0.8295. A sustained break would expose March 4 low at 0.8233, followed by the YTD low at 0.8202.
