EUR/GBP Price Forecast: Neutral bias holds as 0.8600 caps the upside

EUR/GBP experienced a slight downturn on Friday, gravitating towards the lower end of the weekly range. This movement occurred due to the UK economy outperforming expectations with a 0.4% month-over-month expansion in July, compared to the anticipated no growth. Additionally, industrial and manufacturing production exceeded forecasts, with production increasing by 0.2% and 0.9% month-over-month, respectively.

Meanwhile, the Euro has struggled despite the European Central Bank's (ECB) 25-basis-point interest-rate hike, which was expected and aimed at curbing energy-driven inflation stemming from the Middle East conflict. Although the ECB has hinted at potential further rate hikes if energy costs remain high, the Euro's recent performance suggests that traders are pricing in tighter Bank of England (BoE) policy in the upcoming months.

EUR/GBP is currently trading around 0.8582, down 0.13% for the day, with the pair hovering just above the 0.8600-0.8610 resistance region and the 100-day simple moving average (SMA) at 0.8598. This resistance zone serves as a barrier for buyers. The near-term outlook remains neutral, as the cross holds above the 50-day SMA, while momentum indicators suggest a limited bullish bias.