EUR/GBP Technical Analysis: Bulls struggle to make it through 0.8650-60 supply zone
• The cross struggled to capitalize on the recent positive move and once again faltered near the 0.8650-60 supply zone and has now eroded a major part of Friday's goodish up-move to three-week tops.
• The downward momentum dragged the cross further below a three-day-old ascending trend-line support, coinciding with 50-hour SMA, and seemed to be a key trigger for intraday bearish traders.
• Oscillators have been gaining negative traction on hourly charts and support prospects for further weakness, albeit maintained their bullish bias on the daily chart and thus, warrant some caution.
• Hence, it would be prudent to wait for a strong follow-through selling below the 0.8600 handle before confirming that the cross might have topped out and positioning for further depreciating move.
• Conversely, a sustained move beyond the mentioned barrier would negate any near-term bearish bias and set the stage for a subsequent up-move towards reclaiming the 0.8700 round figure mark.
EUR/GBP 1-hourly chart