Forex Market: EUR/GBP daily forecast

During yesterday’s trading session EUR/GBP traded within the range of 0.7889-0.7915 and closed at 0.7909.

At 6:31 GMT today EUR/GBP was losing 0.06% for the day to trade at 0.7906. The pair touched a daily low at 0.7904 at 5:45 GMT.

Fundamental view

Euro zones non-seasonally adjusted current account may have narrowed to 16.2 billion EUR in May, from 18.7 billion EUR in the previous month.

At the same time, the surplus on Euro zone’s seasonally adjusted current account probably widened to 24.3 billion EUR in May, according to the median estimate of experts. In April the surplus figure was 21.5 billion EUR. The official data is to be released at 8:00 GMT.

The seasonally-adjusted current account is considered a more reliable indicator as it is not affected by short-term fluctuations (trend, economic fluctuations, seasonal fluctuations, calendar effects, residual or irregular fluctuations).

The European Central Bank will release an official report at 8:00 GMT. In case the seasonally-adjusted current account widened more than expected, this would provide a boost to the euro.

Technical view

According to Binary Tribune’s daily analysis, in case EUR/GBP manages to breach the first resistance level at 0.7920, it will probably continue up to test 0.7930. In case the second key resistance is broken, the pair will probably attempt to advance to 0.7946.

If EUR/GBP manages to breach the first key support at 0.7894, it will probably continue to slide and test 0.7878. With this second key support broken, the movement to the downside will probably continue to 0.7868.