EUR/GBP Price Forecast: The pair finds resistance above 0.8700

• Euro bulls are rejected above 0.8700, and the Pound regains some ground on Wednesday.
• Upbeat UK S&P Global Services PMI data has provided some support to the GBP.
• EUR/GBP price action remains strapped within a broadening wedge pattern.

The Euro rally against the British Pound has been unable to confirm above the 0.8700 level, and the pair retreated during the European session on Wednesday, turning negative on the daily charts and reaching a low of 0.8685 at the time of writing.

The upward revision of August's UK Services PMI has provided some support to the Sterling, offsetting market concern about the UK's fiscal deficit. In the Eurozone, on the other hand, data has been mixed with services activity revised lower while factory prices beat expectations. 

Technical Analysis: EUR/GBP remains trapped within an expanding wedge 

The EUR/GBP technical picture is showing faltering bullish momentum, with the pair trading inside a broadening pattern --a figure that often highlights an emotional market, often preceding significant moves.

Euro bulls have been capped at Tuesday's high, near 0.8710, a few pips short of the wedge top, now at 0.8725. Further up, the August 7 high and July 23 highs at 0.8745 and 0.8755, respectively, would come into focus.

Immediate support is at the August 22 and 29 highs in the 0.8670 area, ahead of the September 1 low, at 0.8635 and the wedge bottom, now around 0.8320.