EUR/GBP Technical Analysis: Struggling near 4-month lows ahead of UK macro data

   •  A combination of factors - Italian budgetary worries and the recent Brexit optimism kept exerting downward pressure around the cross for the seventh consecutive session.

   •  The cross has now dropped to an important horizontal support as market participants now look forward to the US macroeconomic releases for some fresh impetus.

   •  Technical indicators on the daily chart have drifted into near-term oversold conditions and hence, warrant some consolidation before any further depreciating move.

   •  A positive UK data-led fall to fresh four-month lows is more likely to be limited till the 0.8700 handle, while even a slight disappointment might trigger a short-covering bounce.
 

EUR/GBP daily chart