Anna 
During Wednesday’s European trading session, EUR/GBP maintained a positive trajectory, surging above 0.8600 in response to disappointing UK GDP and manufacturing data. The decline in sterling against major currencies was triggered by the Office for National Statistics’ report, revealing a contraction of 0.3% in the UK’s gross domestic product (GDP) for October. This figure contradicted the consensus forecast of a 0.1% decline, following a 0.2% increase in September.
Adding to the negative sentiment, manufacturing production deteriorated at a rate of 1.1% during the month, aligning with market expectations. Moreover, the trade balance widened more than anticipated, further dampening the economic outlook for the United Kingdom and exerting downward pressure on the pound.
The disappointing data challenges the Bank of England’s previously hawkish stance, intensifying the focus on Thursday’s monetary policy meeting. Investors are keenly watching for the vote results and the central bank’s statement, searching for any indications of a potential dovish shift that could impact sterling’s value negatively.
From a technical perspective, EUR/GBP appears to be on an upward trajectory, encountering resistance levels at 0.8610 and 0.8650. Support is identified at the 0.8550 and 0.8500 areas, suggesting a continuation of the positive tone for the euro against the British pound.
