Forex Market: EUR/GBP daily forecast

During yesterday’s trading session EUR/GBP traded within the range of 0.7914-0.7942 and closed at 0.7926, gaining 0.05% on a daily basis.

At 6:21 GMT today EUR/GBP was up 0.04% for the day to trade at 0.7933. The pair touched a daily high at 0.7936 at 4:25 GMT.

Fundamental view

Euro zone

Spanish manufacturing activity probably continued to increase in July. The Purchasing Managers Index probably climbed to 54.8 from 54.6 in the prior month. The PMI is to be released at 7:15 GMT.

Activity in Italys sector of manufacturing probably expanded in July, with the corresponding PMI coming in at a reading of 52.8, as expected by experts, from 52.6 in June. Values above the key level of 50.0 indicate increased activity. Markit Economics is expected to release the official data at 7:45 GMT.

Frances final manufacturing PMI probably remained in the zone of contraction during July, while confirming the preliminary PMI reading of 47.6, which was reported on July 24th. The official reading is due out at 7:50 GMT.

The final reading of German manufacturing PMI probably confirmed the preliminary value for July, with the index coming in at 52.9. Markit will release the official reading at 7:55 GMT.

The final manufacturing PMI in the Euro zone probably also confirmed the preliminary value in July, with the index remaining at 51.9. 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.

United Kingdom

Activity in United Kingdom’s sector of manufacturing probably slowed down a bit in July, with the corresponding PMI coming in at a reading of 57.2, according to the median forecast by experts, down from 57.5 in June. The index is based on a survey, encompassing managers of companies, that operate in sectors such as manufacturing, mining, utilities. They are asked about their estimate in regard to current business conditions in the sector in terms of 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 PMI readings would certainly heighten the appeal of the sterling. The Chartered Institute of Purchasing and Supply (CIPS) is expected to announce the official reading at 8:30 GMT.

Technical view

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 0.7927. In case EUR/GBP manages to breach the first resistance level at 0.7941, it will probably continue up to test 0.7955. In case the second key resistance is broken, the pair will probably attempt to advance to 0.7969.

If EUR/GBP manages to breach the first key support at 0.7913, it will probably continue to slide and test 0.7899. With this second key support broken, the movement to the downside will probably continue to 0.7885.

The mid-Pivot levels for today are as follows: M1 – 0.7892, M2 – 0.7906, M3 – 0.7920, M4 – 0.7934, M5 – 0.7948, M6 – 0.7962.

In weekly terms, the central pivot point is at 0.7908. The three key resistance levels are as follows: R1 – 0.7943, R2 – 0.7973, R3 – 0.8008. The three key support levels are: S1 – 0.7878, S2 – 0.7843, S3 – 0.7813.