Forex Market: EUR/GBP daily forecast

During yesterday’s trading session EUR/GBP traded within the range of 0.8107-0.8148 and closed at 0.8137.

At 6:09 GMT today EUR/GBP was adding 0.06% for the day to trade at 0.8141. The pair touched a daily high at 0.8144 at 5:30 GMT.

Fundamental view

Euro zone

The final reading of Germany’s Services PMI in May probably met the preliminary value at 56.4. The official reading is to be released at 7:55 GMT.

The final reading of Euro zone’s Services PMI probably coincided with the preliminary value of 53.5 last month. In case market expectations are exceeded, this will boost demand for the single currency. Markit Economics will report the official value at 8:00 GMT.

In addition, Euro zone’s final annualized Gross Domestic Product probably expanded 0.9% during the first quarter of 2014, compared to a year ago. The quarterly GDP in the region probably rose 0.2% in Q1, after a 0.2% increase in the final three months of 2013. In case region’s economy expands more than expected, the single currency would receive support. Eurostat is to publish the official report at 9:00 GMT.

United Kingdom

Activity in United Kingdom’s sector of services probably declined in May, with the corresponding PMI coming in at 58.2, down from 58.7 in April, the highest since November 2013.

The index is based on a survey, encompassing managers of companies, that operate in sectors such as transportation, communications, IT, financial intermediation, tourism. They are asked about their estimate regarding current business conditions (new orders, output, employment, demand in the future). Values above the key level of 50.0 signify that activity in the sector has expanded.

Higher than projected readings would certainly heighten the appeal of the pound. The Chartered Institute of Purchasing and Supply (CIPS) is to announce the official reading at 8:30 GMT.

Technical view

According to Binary Tribune’s daily analysis, in case EUR/GBP manages to breach the first resistance level at 0.8154, it will probably continue up to test 0.8172. In case the second key resistance is broken, the pair will probably attempt to advance to 0.8195.

If EUR/GBP manages to breach the first key support at 0.8113, it will probably continue to slide and test 0.8090. With this second key support broken, the movement to the downside will probably continue to 0.8072.