EUR/GBP Technical Analysis: Bullish move stalls ahead of 50-DMA, dip-buying to help limit downside
|• The cross failed to capitalize on the intraday positive momentum to 3-1/2 week tops and faltered ahead of the 0.8700 handle, coinciding with 50-day SMA resistance.
• Slightly overbought conditions on hourly charts seemed to be the only factor capping gains, rather prompting some long-unwinding/profit-taking move on Thursday.
• However, given the overnight bullish break beyond a two-month-old descending trend-line resistance, the current pull-back might still be seen as a buying opportunity.
• Technical indicators on the daily chart have also started recovering from the negative territory and further add credence to the near-term constructive outlook.
• Hence, any meaningful dip is more likely to attract some dip-buying interest for an eventual move towards 0.8740 horizontal resistance en-route 100-day SMA.
EUR/GBP daily chart
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