• The EUR/GBP pares some of its monthly gains, courtesy of risk-off market mood and technical barriers.
• The 100-DMA capped EUR/GPB rally, followed by a consolidation of three days.
• A daily close below 0.8358 would keep the EUR/GBP sellers in control as they prepare for an attack of 0.8300.

The shared currency losses ground for the third consecutive day against the British pound amid a risk-off market mood spurred by Russia/Ukraine conflict. That said, at press time, the EUR/GBP is trading at 0.8354.

The EUR/GBP price action on the last three days witnessed a fall in line with the overall trend of the daily moving averages (DMAs), lying above the spot price. However, when the BoE and the ECB revealed their monetary policy decisions, the pair rallied almost 200-pips, towards 0.8477, which pierced the 100-day moving average (DMA), retreating three days afterward.

EUR/GBP Price Forecast: Technical outlook

The EUR/GBP remains tilted to the downside. Last Friday’s price action triggered a leg-down as bears reclaimed the 50-DMA at 0.8413, which exacerbated a downward move beyond the 0.8400 figure, reaching a daily low at 0.8358.

During the overnight session for North American traders, the EUR/GBP bulls attacked February’s 11 daily low and printed a daily high at the daily pivot point at 0.8385, followed by a drop below 0.8358, where the EUR/GBP comfortably trades as the New York session end looms.

The EUR/GBP first support level would be 0.8345. Breach of the latter would expose January 31 low at 0.8304. Once that level is cleared, it would expose the YTD low at 0.8283 and then a probe of 0.8200.