Forex Market: EUR/GBP daily trading forecast

Yesterday’s trade saw EUR/GBP within the range of 0.7842-0.7873. The pair closed at 0.7854, losing 0.24% on a daily basis.

At 6:41 GMT today EUR/GBP was down 0.05% for the day to trade at 0.7850. The pair touched a daily low at 0.7842 at 4:30 GMT.

Fundamental view

Euro zone

The preliminary manufacturing PMI in the Euro zone probably came in at 50.6 in September, following a final reading of 50.7 in August. The latter has been the lowest level since July 2013, due to expanding activity in Germany at the slowest pace in 11 months and contracting activity in France and Italy. The official reading is scheduled to be released at 8:00 GMT. The PMI is based on a monthly survey, encompassing a sample of business entities, which represents private sector conditions in terms of new orders, output, employment, prices etc. Higher than expected readings would provide support to the common currency.

The preliminary services PMI in the Euro region probably slipped to 53.0 in the current month, after being reported at 53.1 in August. The official reading is due out at 8:00 GMT.

United Kingdom

The number of home loans in the United Kingdom, issued by the British Bankers Association (BBA), probably increased to 42 900 in August from 42 792 in July. The BBA features the major banks in the country, which account for almost 60% of overall mortgage lending. The number of mortgage loans is considered as a leading indicator in regard to UK housing market conditions. As growth in mortgage lending signifies a healthy housing sector, which also contributes to overall economic activity, in case the number of loans rose more than projected, this would boost demand for the sterling. The BBA is to publish the official figure at 8:30 GMT.

Technical view

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 0.7856. In case EUR/GBP manages to breach the first resistance level at 0.7871, it will probably continue up to test 0.7887. In case the second key resistance is broken, the pair will probably attempt to advance to 0.7902.

If EUR/GBP manages to breach the first key support at 0.7840, it will probably continue to slide and test 0.7825. With this second key support broken, the movement to the downside will probably continue to 0.7809.

The mid-Pivot levels for today are as follows: M1 – 0.7817, M2 – 0.7833, M3 – 0.7848, M4 – 0.7864, M5 – 0.7879, M6 – 0.7895.

In weekly terms, the central pivot point is at 0.7885. The three key resistance levels are as follows: R1 – 0.7963, R2 – 0.8051, R3 – 0.8129. The three key support levels are: S1 – 0.7797, S2 – 0.7719, S3 – 0.7631.