Euro steadies against British Pound as strong PMIs offer support on both sides

EUR/GBP maintains steady position around 0.8570 as strong PMI reports offer support for both the Euro and the British Pound. In the Eurozone, the preliminary HCOB Manufacturing PMI rises to 52.8 in August, exceeding market expectations of 51.8. Meanwhile, services activity holds steady at 51.7, surpassing expectations of 51.5. The Composite PMI improves to 52.1, outpacing forecasts of 51.7 and the previous reading of 52.

Conversely, Germany's Manufacturing PMI surges to 54.1 in August, marking its highest level in 51 months, while the Services PMI declines to 48.5, below expectations of 50.1. The Composite PMI eases to 51, missing forecasts of 51.3. On the UK side, the S&P Global PMI shows stronger-than-expected business activity, with the Composite PMI rising to 52.5 in August, surpassing expectations of 51.6.

This improvement stems primarily from the services sector, which accelerates to 52.8 from 52.1, significantly exceeding the 51.8 consensus. The Manufacturing PMI remains unchanged at 51.5, aligning with expectations. These positive economic indicators lend strength to the British Pound, despite weaker consumption data, as reported by the Office for National Statistics.

The mixed macroeconomic signals from both regions contribute to the EUR/GBP stability. The one-hour chart indicates a mildly bullish sentiment for EUR/GBP, with the pair trading above key support levels. The pair is above both the 100-period and 200-period SMAs, supported by a rising trend-line around 0.8554. The RSI remains neutral at 48, signaling consolidation rather than a directional move.

The next resistance level is near 0.8575, followed by a more significant barrier around 0.8585. Should the pair fail to break above these levels, support may be found near the 100-period SMA at 0.8562, with deeper support provided by the trend-line at 0.8554 and the 200-period SMA at 0.8553.