EUR/GBP slips as strong PMIs cancel out and Iran signals de-escalation

EUR/GBP is trading slightly lower as stronger-than-expected August flash PMIs in both the eurozone and the UK offset each other, limiting direction. The eurozone composite PMI hit a nine-month high, helped by manufacturing and a stronger German factory reading, while UK services also surprised to the upside. Despite weak UK retail sales, sterling remained resilient. Geopolitical headlines added to the cautious tone: Iran signaled a desire to de-escalate tensions with the US, which has kept European currencies range-bound this week. Technically, EUR/GBP is capped near 0.8566 by the 20-period SMA, with the pair at 0.8563 and the RSI near neutral, suggesting a short-term bearish bias but no clear breakout yet. Key support sits near 0.8559.