Having struggled to move beyond the 0.8700 mark, the EUR/GBP cross edged lower on Thursday and was last seen trading near daily lows, around the 0.8680-75 region. The cross has now erased the previous day's modest gains, though the near-term bias still seems tilted in favour of bullish traders. The EUR/GBP cross last week confirmed a bullish breakout through a falling wedge pattern. This coupled with the emergence of some dip-buying near the 0.9218-0.8472 fall supports prospects for an extension of the recovery from one-year lows touched earlier this April.

The constructive outlook is reinforced by the fact that technical indicators on the daily chart have been gaining traction and eased from the overbought zone on the 4-hour charts. Hence, a subsequent move towards the next relevant hurdle, around the 0.8730-40 supply zone, looks a distinct possibility. On the flip side, any meaningful pullback might find decent support near the 0.8645-40 zone. level and 50-day SMA confluence. Further weakness might still be seen as an opportunity for bullish traders and remain limited near the falling wedge breakpoint, around the 0.8600 mark.