EUR/GBP held in the mid-0.8500s on Tuesday and failed to regain 0.8600, even after the European Central Bank lifted its three key rates by 25 bps on September 10, taking the deposit rate to 2.50%. German and Eurozone ZEW sentiment surveys offered little support, with the Eurozone economic sentiment gauge falling short of forecasts. Sterling stayed resilient despite a softer UK labour release: Claimant Count claims rose more than expected in August and employment growth cooled over the three months to July, leaving the rate differential as the main near-term driver.
Outlook for UK Data and Central Bank Decisions
Attention shifts to Wednesday’s UK inflation data, where headline CPI is expected to rise to 3.1% from 2.9% as services prices remain elevated, before the Bank of England decision on Thursday, when policy is widely expected to be left unchanged.
Technical Levels and Market Positioning
In technical trade, the pair was at 0.8558 on the four-hour chart, remaining below the 20-period and 100-period SMAs at 0.8572 and 0.8575, while a tight overhead zone spans 0.8559 to 0.8575 and the RSI was drifting towards 35. Resistance is mapped at 0.8559, then 0.8562 and 0.8565, with support near 0.8554.
