EUR/GBP Technical Analysis: UK jobs report helps defend a horizontal support, only for the time being

   •  The cross extended its sideways consolidative price action for the second consecutive session and once again managed to find support near the 0.8740 region post-UK jobs data.

   •  The range-bound price action now seemed to constitute towards the formation of a bearish descending triangle on the 1-hourly chart, clearly suggesting further near-term downside.

   •  The fact that the cross remains well below its important intraday moving averages - 50, 100 & 200-hour SMAs, coupled with bearish technical indicators reinforce the negative set-up. 

   •  Traders, however, are likely to wait for a convincing break through the triangle support before positioning for further depreciating move towards multi-month lows set on Jan. 25.

EUR/GBP 1-hourly chart