EUR/GBP technical analysis: Bulls manage to defend 200-hour SMA ahead of ECB

   •  The EUR/GBP cross stalled its recent rejection slide from the 0.8900 handle and managed to find some support near the 0.8840-50 congestion zone.

   •  The mentioned horizontal support coincides with 200-hour SMA and should now act as a key pivotal point ahead of the latest ECB policy update.

Meanwhile, technical indicators have managed to recover from the bearish territory on hourly charts but seemed struggling to regain positive traction, warranting some caution ahead of Thursday's key event risk.

However, oscillators on the daily chart maintained their bullish bias and have also eased from the oversold zone, supporting prospects for some meaningful dip-buying interest on any subsequent slide to sub-0.8800 level.

Having said that, sustained weakness below the mentioned handle might prompt some additional long-unwinding trade and the cross seems more likely to accelerate the slide further towards mid-0.8700s.

On the upside, immediate resistance is now pegged near the 0.8875 region and is closely followed by the 0.8900 handle, which if cleared decisively will reaffirm near-term bullish bias set the stage for additional gains.

EUR/GBP 1-hourly chart