• The EUR/GBP advances during the North American session, up some 0.18%.
• Eurozone inflation rose more than expected, breaking the 5% threshold.
• EUR/GBP Technical outlook: Bearish biased as long as it remains below 0.8500.

The shared currency rises for the third day in a row against the British pound, on higher than expected Eurozone inflation figures. The EUR/GBP is trading at 0.8361 during the North American session at press time.

Eurozone HICP Flash for December rises above the 5% threshold

On Friday, during the overnight session for North American traders, the Eurozone economic docket featured inflation figures. The HICP Flash for December on an annual basis rose by 5.0%, higher than the 4.7% estimated by analysts. The jump in the figure is attributed to high energy prices, rising 26%, compared to 2021. However, increases for food, services, and imported goods were also above the European Central Bank’s target of 2%.

EUR/GBP Price Forecast: Technical outlook

The EUR/GBP portrays its inability to break under the YTD low at 0.8335 two times, one in Friday’s session. Nevertheless, the daily moving averages (DMAs) position 90-pips above the spot price, confirming the downward bias in the pair.

The EUR/GBP first resistance would be a resistance trendline drawn from January 5 highs, which confluences near the R1 daily pivot point around the 0.8366-72 region. A breach of that area would expose the 200-hour SMA at 0.8380, followed by the R2 daily pivot at 0.8386.

On the other hand, EUR/GBP’s first support level would be the 100-hour SMA at 0.8356, once broken would expose the 50-hour SMA at 0.8350, followed by the S1 daily pivot at 0.8334.