EUR/GBP Exchange Rate Falters Below Key Resistance Level

The EUR/GBP exchange rate has stabilized below the resistance level of 0.8586 after a brief rally, trading at 0.8575 as of writing.

Recent data from the Eurozone showed a strong increase in German Factory Orders for June, exceeding market forecasts by 3.1%.

FX strategists at Rabobank believe that the Pound may face pressure due to nervousness ahead of the October budget and steady policy expectations from the Bank of England this year.

Rabobank recommends buying EUR/GBP on dips to the 0.8550 area, with a break above the recent high in the 0.8588 region increasing upside potential.