EUR/GBP Price Analysis: Sits near the top end of 1-week old trading range, just below mid-0.8700s

• EUR/GBP stages a modest recovery from 1-1/2 month lows set last week.
• Any subsequent recovery might be seen as a selling opportunity near 0.8780.

The EUR/GBP cross gained some positive traction on the first day of a new trading week and is currently placed near the top end of a one-week-old trading range, around the 0.8735-40 area.

The mentioned region coincides with the very important 200-day SMA support break-point, which should now act as a key pivotal point and help determine the pair's near-term trajectory.

The intraday uptick was further supported by the fact that technical indicators have been gaining some positive traction on hourly charts, supporting prospects for additional gains.

Meanwhile, oscillators on the daily chart maintained their bearish bias and are still far from being in the oversold territory, suggesting the emergence of some selling at higher levels.

Hence, any subsequent recovery seems more likely to confront some heavy supply near the 0.8775-80 horizontal zone and remain capped near the 0.8800 round-figure mark.

On the flip side, bearish traders are likely to wait for a sustained break below the 0.8700 mark before positioning for any further near-term depreciating move.

Below the mentioned handle, the cross is likely to accelerate the slide further towards an intermediate support, around mid-0.8600s, en-route the 0.8600 round-figure mark.

EUR/GBP daily chart

Technical levels to watch