EUR/GBP Technical Analysis: Fails to capitalize on the recent rebound but holds above 100-hour SMA ahead of UK PMI

   •  The cross struggled to capitalize on last week's late recovery from multi-month lows and was seen oscillating in a narrow trading band, just below the 0.8700 handle. 

   •  The cross, however, seems to have formed a firm intraday base near 100-hour SMA and the set-up favours prospect for a follow-through short-covering move on Monday.

   •  Technical indicators on the 1-hourly chart further reinforce the constructive outlook, albeit bearish oscillators on 4-hourly/daily charts might keep a lid on any strong recovery.

   •  Market participants now look forward to the release of UK construction PMI before placing any aggressive bets and positioning for an extension of the ongoing recovery trend.

EUR/GBP 1-hourly chart