24.07.202312:09 Forex Analysis & Reviews: EUR/GBP dips over weak data from the eurozone

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EUR/GBP fell under strong selling pressure in response to gloomy data from the eurozone.

Prior to today's release of PMI data, the preliminary report from S&P Global indicated a sharp slowdown in business activity in the two largest economies of the eurozone - France and Germany.

Furthermore, the released data does not align with the forecast, easing pressure on the European Central Bank to raise interest rates.

Negative data on the UK's manufacturing PMI also came out, keeping the pair from moving in any direction.

Last week, the Bank of England's chances of a more aggressive policy tightening dipped over softer data on consumer inflation.

As such, market players should refrain from aggressive positions and wait for the decisive policy meeting of the European Central Bank on Thursday.

The technical price increase above the June highs may also indicate a further growth in the pair, albeit in the short term.

The pair currently trades near the highs of last month.

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