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Euro trades sideways versus pound sterling near 0.8540
The UK data showed second-quarter GDP rising 0.4% and June growth support for GBP, while June factory and industrial production declines highlighted drag from higher energy prices.
EUR/GBP was trading sideways on Thursday near 0.8540, with the euro steadying after three straight days of losses as traders weighed mixed UK signals.
According to FXStreet, UK Office for National Statistics data showed GDP growth of 0.4% in the second quarter, matching forecasts but slowing from the prior quarter. A firmer-than-expected monthly June reading provided a small lift for the pound, but factory and industrial production fell in June, with both Industrial Production and Manufacturing Production shrinking by more than expected and prior figures revised lower.
FXStreet also pointed to the drag from higher energy prices linked to the Middle East conflict, and said attention is shifting to Friday's Eurozone flash releases, where GDP is expected to hold at 0.4% on the quarter.
On the technical side, EUR/GBP was around 0.8544, holding below the 100-period simple moving average near 0.8556 and testing the 20-period SMA, with near-term resistance clustered around 0.8546 and 0.8553 and support at about 0.8542, according to FXStreet's analysis.