EURGBP Price Analysis: Retreats from 200-SMA but buyers remain hopeful

• EURGBP pares the biggest daily gain in six weeks.
• Sustained break of descending triangle, firmer oscillators favor buyers.
• Bears need validation from 0.8660, October’s high adds to the upside filters.

EURGBP takes offers to refresh the intraday low near 0.8708 heading into Friday’s European session. In doing so, the cross-currency pair consolidates the biggest daily gains since late September, marked the previous day.

Technically, the quote’s recent weakness could be portrayed by a pullback from the 200-SMA. However, a successful break of the three-week-old bearish triangle, crossed on Thursday, keeps the pair buyers hopeful unless the quote drops back below 0.8660.

Also favoring the EURGBP sellers could be the bullish MACD signals and the strong RSI (14), not overbought.

Even if the quote breaks 0.8660 resistance-turned-support, the downside could have a limited shelf life lower line of the stated triangle, around 0.8570, which could challenge the pair bears.

It should be noted that September’s low near 0.8566 acts as the last defense of the EURGBP buyers.

Alternatively, recovery moves need to cross the 200-SMA hurdle of 0.8740 to recall the EURGBP bulls.

Even so, the previous monthly top near 0.8865 appears a tough nut to crack for buyers.

Following that, a run-up towards the 0.9000 psychological magnet can’t be ruled out.

EURGBP: Four-hour chart

Trend: Further weakness expected