FxWirePro: EUR/GBP grinds sideways along 200H MA support, outlook bearish

EUR/GBP chart - Trading View 

EUR/GBP was trading range bound on the day with session highs at 0.8653 and lows at 0.8628.

The British pound buoyed across the board following UK budget announcement on Wednesday.

Markets perceive the budget to improve UK's economic outlook and are pricing in a hawkish BoE rate setting.

Money markets are now pricing in 10bps of interest rate hikes from the BoE by the end of 2022.

Further, positive vaccine developments and expectations of earlier easing of UK’s lockdown restrictions keep sentiment buoyed.

The pair struggles for direction, but technical analysis supports weakness in the pair. Price action is below major moving averages.

Recovery attempts were rejected at 21-EMA and the pair continues to grind sideways along 200H MA.

The pair is set to retest 2021 lows at 0.8538. Further weakness is likely to take the pair lower to test 110-month EMA at 0.8466.

On the flipside, 5-DMA is immediate resistance at 0.8649. Break above 21-EMA required for any meaningful gains.