EUR/GBP eases from intraday highs as traders eye dual flash PMIs

EUR/GBP slipped from intraday highs as traders awaited dual flash Purchasing Managers Index (PMI) releases. The cross sank 0.15% in Thursday's American session, with investors preparing for a data-heavy Friday. Tensions persisted globally after U.S. President Donald Trump unveiled a major economic sanction against Iran, threatening consequences for any nation aiding Tehran's financial needs.

Both the Euro and British Pound were influenced by the same factors, making the EUR/GBP pairing more of an oil and broader risk-sentiment affair rather than a response to the energy shock. Friday's PMI data was the primary focus. Eurozone PMIs were anticipated to remain in the expansion range, with a composite estimate of 51.7, giving the Euro a slight bullish edge.

Conversely, UK PMIs forecast a soft performance, with Retail Sales expected to decline and the S&P Global UK Composite PMI expected to dip from the previous month. On the 4-hour chart, EUR/GBP was trading at 0.8567, maintaining a slight bullish outlook as the price stayed above both the 20-period and 100-period Simple Moving Averages (SMAs) at 0.8561 and 0.8560, respectively.

It was also above the horizontal support at 0.8563, indicating a constructive sentiment. The Relative Strength Index (RSI) at 54 remained neutral with a modest positive tilt, signaling that buying pressure continued to outweigh selling interest without reaching overbought conditions. Although the next resistance was at 0.8572, followed by key barriers at 0.8575 and 0.8577, EUR/GBP needed to clear these levels to sustain the upward trend.

Meanwhile, support levels were layered at 0.8563, with the 20-period SMA at 0.8561 and the 100-period SMA at 0.8560 reinforcing a nearby demand zone. As long as EUR/GBP stayed above these levels, a continued climb towards the overhead cluster was favored.