EUR/GBP Price Forecast: Subdued near 0.8400 on risk-off mood

• EUR/GBP fluctuates within 30 pip range, holds above 0.8400 with a minor 0.02% increase.
• Sterling faces pressure as China's manufacturing PMI downturn favors Euro gains.
• Technical outlook suggests consolidation potential; key resistance at 200-day SMA of 0.8422.

The EUR/GBP is firm during the North American session, after seesawing in a 30 pip range, though buyers reclaimed the 0.8400 figure for a small gain of 0.02%.

Market mood remains negatively, on news that China's business activity worsened in January according to the National Bureau of Statistics (NBS) Manufacturing PMI. This weighed on Sterling, which is weakened against the single currency.

EUR/GBP Price Forecast: Technical outlook

The EUR/GBP has extended its losses below the 200-day Simple Moving Average (SMA) at 0.8422, which has opened the door to test challenge lower prices, but bulls are stepping in around the 0.8400 figure.

The relative Strength Index (RSI) is bullish, though it has turned flat, an indication that the cross might consolidate, before resuming its ongoing uptrend.

For a bullish continuation, buyers must crack the 200-day SMA. If cleared, the next stop will be the January 24 daily high at 0.8462, ahead of the next cycle high at 0.8473 the January 20 peak.

On the other hand, if sellers push prices below the 0.8400 figure, the next support would be the latest pivot low of 0.8383 the January 14 low, followed by the 100-day SMA at 0.8347.

EUR/GBP Price Chart - Daily