EUR/GBP bounces off lows but lacks follow-through, seems vulnerable

   •  Snaps four consecutive days of winning streak.
   •  Rebound lacks any follow-through traction.
   •  Technical studies suggest additional near-term weakness.

The EUR/GBP cross rebounded around 20-pips from an intraday low level of 0.8734 but lacked any strong follow-through traction. 

The cross stall overnight rejection slide from the 0.8800 neighborhood and traded with a mild negative bias through the early European session on Wednesday, snapping four consecutive days of winning streak. 

The rebound to an intraday high level of 0.8762 lacked any obvious fundamental trigger and hence, struggled to gain any follow-through traction. 

Meanwhile, the latest price action over the past 24-hours now seems to suggest that the recent sharp recovery from over 9-month lows might already be over and the cross now seems to resume with its prior depreciating move. 

However, it would be prudent to wait for a subsequent selling pressure, amid absent economic releases, before traders start repositioning for further downside in the near-term. 

Technical levels to watch

Immediate support is pegged near 0.8725 level and is followed by the 0.8700 handle, which if broken might turn the cross vulnerable to head back towards testing recent swing lows support near the 0.8670-65 region.

On the upside, 0.8760 zone now seems to have emerged as an immediate resistance, above which the cross is likely to make a fresh attempt towards reclaiming the 0.8800 handle.