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  • EUR/GBP is defending the 50-day moving average support of 0.9044.
  • The 50-day MA reversed pullback in July and helped the pair carve out a higher high.

EUR/GBP’s sell-off from the Aug. 12 high of 0.9324 seems to have run out of steam near the widely-followed 50-day moving average of 0.9044 in the last 12 hours.

The average worked as strong support in July. For instance, the pullback from the July 17 high of 0.9051 stalled around the 50-day MA support of 0.8912 on July 25 and the pair picked up a bid on the following day and rose above 0.8912 on July 29.

Put simply, the 50-day MA reversed pullback in July.

So, if the 50-day MA continues to hold during the day ahead, technical buyers will likely step in, lifting the pair higher to 0.91. The short-term outlook, however, would turn bullish only if prices violate the bearish lower high of 0.9184 created on Aug. 20.

A daily close below 50-day MA will likely invite stronger selling pressure.

Daily chart

Trend: Neutral

Pivot points