EUR/GBP Pauses at 0.8585 as Eurozone Growth Outlook Uncertain

The EUR/GBP currency pair is experiencing a decline as it tests support at a previous high of 0.8585. This comes after failing to break above 0.8600 last week.

In the Eurozone, the economy grew at a faster rate than initially thought in Q2, with GDP revised up to 0.6% from an estimated 0.4%. However, downbeat German Industrial Production figures cast doubt on the Eurozone's growth outlook and put negative pressure on the Euro.

Meanwhile, Lloyds Housing Price Index revealed that house prices contracted against expectations in August, but these figures had little impact on the Pound.

A break below 0.8585 would expose the 0.8565 area, where a trendline from mid-August lows meets the September 2 trough. This would negate the upside trend and suggest further decline for the EUR/GBP pair.