⚡ 0.8600 under pressure: EUR/GBP at two-month highs following Services PMIs

EUR/GBP surged to two-month highs above 0.8600 on Thursday as the Euro extended its winning streak against Sterling for a fourth consecutive session. The move follows disappointing downward revisions to Services PMI data from both the Eurozone and UK, though the British Pound bore the brunt of market reactions.

The pair’s rally past the 0.8600 level signals growing weakness in Sterling relative to the single currency, despite both economies showing softer service sector activity. Traders are viewing UK economic data more negatively, putting additional pressure on GBP crosses. The sustained four-day advance suggests momentum remains firmly with Euro bulls in this pairing.

Currency traders and forex brokers should monitor upcoming economic releases from both regions closely, as further divergence in data quality could push EUR/GBP higher. The two-month peak represents a technical breakout that may attract additional momentum-driven buying.

FXnCO Insight

Short-term traders should watch 0.8600 as a critical support level, with Sterling vulnerability creating opportunities in EUR/GBP long positions until UK data shows material improvement.

Source: FXStreet