The Pound Sterling (GBP) is encountering resistance near the 1.3500 level against the US Dollar (USD), as buyers test a familiar zone ahead of key economic data releases. With the Bank of England (BOE) and the Federal Reserve (Fed) maintaining nearly identical interest rates, upcoming data—including UK wage and inflation figures, the FOMC minutes, and Jackson Hole positioning—are expected to play a decisive role in determining the next market direction [1].
Against the Euro (EUR), the Pound has found some support from UK economic growth data. The UK Office for National Statistics reported that Gross Domestic Product (GDP) grew by 0.4% in the second quarter, matching forecasts but slowing from the previous quarter's pace. A stronger-than-expected monthly reading for June provided a modest lift to the Pound. However, this optimism was tempered by disappointing factory data: both Industrial Production and Manufacturing Production contracted in June, underperforming market expectations, with previous figures also revised lower. These declines highlight ongoing challenges from elevated energy prices linked to the Middle East conflict [2].
The EUR/GBP pair is trading sideways near 0.8540, with the Euro steadying after three days of losses. Technical analysis shows EUR/GBP at 0.8544, maintaining a mildly bearish tone below the 100-period Simple Moving Average (SMA) at 0.8556 and testing the 20-period SMA at 0.8544. Resistance levels are clustered at 0.8546, 0.8553, and 0.8556, forming a dense supply zone, while support is seen at 0.8542 and 0.8539. The Relative Strength Index (RSI) at 44 suggests balanced but slightly soft momentum [2].
Looking ahead, market participants are focused on upcoming UK wage and inflation data, as well as Friday's Eurozone flash releases, which include second-quarter GDP and Employment Change figures. In-line results are expected to keep the Euro stable, but any surprises could trigger movement in the EUR/GBP cross [1][2].
CONCLUSION
The Pound Sterling is facing resistance despite steady UK growth data, with market attention shifting to upcoming economic releases that could determine the next move for both GBP/USD and EUR/GBP. Factory sector weakness and external energy pressures remain headwinds, while technical levels suggest a consolidative range in the near term.