Forex Market: EUR/GBP daily forecast

During yesterday’s trading session EUR/GBP traded within the range of 0.7890-0.7918 and closed at 0.7893.

At 6:43 GMT today EUR/GBP was adding 0.06% for the day to trade at 0.7897. The pair touched a daily low at 0.7889 at 6:00 GMT, the pairs weakest since September 5th 2012.

Fundamental view

The annualized final consumer price index in the Euro zone, evaluated in accordance with Eurostat’s harmonized methodology, probably remained unchanged at 0.5% in June, matching the preliminary estimate reported on June 30. In May the annualized final HICP also stood at 0.5%, as reported on June 16th. The index shows the change in price levels of a basket of goods and services from consumer’s perspective and also reflects purchasing trends. The HICP is used to evaluate and compare inflation rates between Member States, according to Art . 121 of the Amsterdam’s Agreement and directives by the European Central Bank (ECB), in order to achieve price stability and the implementation of monetary policy. In case the HICP increased more than anticipated, thus, approaching the 2% inflation objective set by the ECB, this would support demand for the euro, because of the greater possibility of an interest rate hike. Eurostat is scheduled to release the official data at 9:00 GMT.

Technical view

According to Binary Tribune’s daily analysis, in case EUR/GBP manages to breach the first resistance level at 0.7911, it will probably continue up to test 0.7928. In case the second key resistance is broken, the pair will probably attempt to advance to 0.7939.

If EUR/GBP manages to breach the first key support at 0.7883, it will probably continue to slide and test 0.7872. With this second key support broken, the movement to the downside will probably continue to 0.7855.