EUR/GBP Exchange Rate Crumbles Below Key Support Level

The EUR/GBP exchange rate is under increasing pressure after slipping below the key support level of 0.8550, according to analysts at TMGM.

The pair has been consolidating near two-week lows, weighed down by a cautious market mood and rising oil prices.

Strategists at Rabobank warn that the breakdown of the US-Iran peace agreement implies downside risks to growth and upside inflation concerns for the Eurozone economy.

The technical analysis suggests bears remain in control while below 0.8550, with initial support emerging at 0.8530 (July 24 low) and a previous resistance area around 0.8510.