EUR/GBP Technical Analysis: Bulls now await a follow-through move beyond 200-DMA

   •  The cross had been showing remarkable resilience below the 0.8700 handle over the past week or so and continued finding some buying interest at lower levels.

   •  The latest UK political development prompted some aggressive short-covering move on Thursday and helped the cross to rebound sharply from near seven-month lows.

   •  The upsurge helped move past 38.2% Fibonacci retracement level of the 0.9099-0.8656 recent downfall, albeit bulls struggled to build on the momentum beyond 200-day SMA.

   •  Technical indicators on hourly charts have already moved into overbought territory and are yet to catch up on the daily chart, which seemed to be the only factor capping further gains.

   •  Hence, it would be prudent to wait for a strong follow-through buying before confirming that the cross might have actually formed a firm base/bottomed out in the near-term. 

EUR/GBP daily chart