• The EUR/GBP gained almost 2% in the last week.
• The market mood shifted from mixed to upbeat as US equities regained composture and traded in the green.
• EUR/GBP Price Forecast: Shifted to upward biased once it broke a descending channel to the upside, opening the door for further gains.

The EUR/GBP retreats from weekly highs at around 0.8600 reached last week, though remains around the mid 0.85-0.86 range late in the New York session, amidst a mixed market mood. At 0.8550, the EUR/GBP shifted to an upward bias, following last week’s gains of 1.90%.

Sentiment has improved as the New York session progressed. US equities pared some earlier losses and record gains between 0.18% and 1.95%, despite factors like China’s Covid-19 zero-tolerance restrictions and the Ukraine-Russia war.

On Tuesday, during Asian and European sessions, the EUR/GBP opened around 0.8560s and fluctuated around the 0.8530-80 range throughout the day. Late in the North American session, the EUR/GBP settled around the daily pivot around 0.8550, shy of the 50-hour simple moving average (HSMA) at 0.8554, opening the door for a retest of the 100-HSMA around 0.8523.

EUR/GBP Price Forecast: Technical outlook

The EUR/GBP is upward biased and reached a fresh YTD high at around 0.8591. It is worth noting that a descending channel was broken to the upside, opening the door for further gains. That, alongside the 50-day moving average (DMA) at 0.8375, crossing over the 100-DMA, further cement the upward bias.

With that said, the EUR/GBP’s first resistance would be the YTD high at 0.8591. A breach of the latter would expose the September 29 daily high at 0.8658. Once cleared, the next resistance would be April 26 at 0.8719.