• EUR/GBP has picked offers around 0.8400 and has shifted back inside the woods.
• Lower consensus for eurozone GDP has weakened the shared currency bulls.
• The inflation rate in the UK may accelerate to a two-digit figure swiftly.

 The EUR/GBP pair is trading in a charted territory of 0.8379-0.8400 range in the early European session. The asset has remained in the negative trajectory for the past week after failing to tap the crucial resistance of 0.8600. Escalating odds of an energy crisis in eurozone has weakened the shared currency bulls.

The eurozone caters more than 25% of its energy demand from Russia. After Russia invaded Ukraine, the European Union (EU) levied an embargo on oil and energy imports from Russia. For some unwarranted reasons, Russia has cut off the gas supply to Europe from its main pipeline which has featured the expectations of an energy crisis. Investors are betting that energy prices will soar as Winter is coming and demand will escalate tremendously.

Should the eurozone hit an energy crisis, the jobless rate will accelerate meaningfully and a recession situation could get real.

Going forward, the release of the eurozone Gross Domestic Product (GDP) will hog the limelight. The economic data is expected to release lower to 3.4% vs. 5.4% reported in the previous quarter. An occurrence of the same will weaken the shared currency bulls further.

On the UK front, the market participants are expecting more policy tightening measures by the Bank of England (BOE) as the price pressures are likely to kiss the two-digit figure, considering the ongoing momentum and the unavailability of exhaustion signs. Also, the political dilemma is impacting the sentiment of the market.