Forex Market: EUR/GBP daily forecast

During yesterday’s trading session EUR/GBP traded within the range of 0.8233-0.8276 and closed at 0.8236.

At 6:29 GMT today EUR/GBP was losing 0.05% for the day to trade at 0.8233. The pair touched a daily low at 0.8232 at 6:28 GMT.

Fundamental view

The deficit on United Kingdoms trade balance probably narrowed to 9.200 billion GBP in February from a deficit figure of 9.793 billion GBP during the preceding month. This indicator is also known as visible trade balance, because it reflects the difference in value between exported and imported physical goods, without the inclusion of exported and imported services. Since UK economy is to a great extent dependent on trade, the visible trade balance is considered as a key factor, providing clues over the resilience of nations economic growth. In case UK trade decifit shrank more than anticipated, this would provide support to the pound. The Office for National Statistics (ONS) will publish the official figure at 8:30 GMT.

At the same time, the deficit on United Kingdoms trade balance with countries outside the European Union probably also narrowed to 3.400 billion GBP in February from a deficit of 3.990 billion GBP in January. A higher than expected deficit would have a bearish effect on nations currency.

Technical view

According to Binary Tribune’s daily analysis, in case EUR/GBP manages to breach the first resistance level at 0.8264, it will probably continue up to test 0.8291. In case the second key resistance is broken, the pair will probably attempt to advance to 0.8307.

If EUR/GBP manages to breach the first key support at 0.8221, it will probably continue to slide and test 0.8205. With this second key support broken, the movement to the downside will probably continue to 0.8178.