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FxWirePro: EUR/GBP dives to hit fresh 12-month lows, outlook strongly bearish

EUR/GBP chart - Trading View 

EUR/GBP is extending bearish bias for the 3rd straight session, bias strongly bearish.

The pair was trading 0.31% lower on the day at 0.8522 at around 09:20 after testing fresh 12-month lows at 0.8509 earlier today.

A highly-successful vaccination distribution program and the diminishing possibility of further monetary policy easing by the Bank of England keep the pound buoyed.

On the other side, concerns that pandemic-related restrictions could derail the fragile Eurozone economic recovery amid the slow pace of vaccinations dent euro.

EUR/GBP has slipped to the lowest level since February 2020 and charts indicate more downside for the pair.

Technical bias for the pair is strongly bearish. Recovery attempts failed at 21-EMA. Scope for test of 88.6% Fib at 0.8415. 

That said, recent escalation of diplomatic tensions between the UK and China might limit the downside for the EUR/GBP cross. Bearish invalidation only above daily cloud.
 

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