Forex Market: EUR/GBP daily outlook

During yesterday’s trading session EUR/GBP traded within the range of 0.8329-0.8369 and closed at 0.8347.

At 7:50 GMT today EUR/GBP was gaining 0.05% for the day to trade at 0.8353. The pair touched a session high at 0.8358 at 7:15 GMT.

Fundamental view

The surplus on Euro zones seasonally adjusted current account probably narrowed to 18.4 billion EUR in January, according to the median estimate of experts. In December the surplus figure was 21.3 billion EUR. The official numbers are to be released at 9:00 GMT.

In addition, the preliminary value of the compound index of economic sentiment (ESI) for the Euro zone probably improved to a reading of -12.3 during the current month from -12.7 in February. The European Commission is expected to publish the preliminary data at 15:00 GMT. This survey precedes the final reading by two weeks. A larger than projected improvement in the index would provide support to the single currency.

Meanwhile, United Kingdoms public sector net borrowing (PSNB) probably produced a net deficit of 7.9 billion GBP during February, according to the median estimate by experts. In January the result has been a net surplus of 6.4 billion GBP, which indicated that nations budget surplus was at the lowest level since 2010. The Office for National Statistics (ONS) is expected to publish the official figure at 9:30 GMT.

Technical view

According to Binary Tribune’s daily analysis, in case EUR/GBP manages to breach the first resistance level at 0.8368, it will probably continue up to test 0.8388. In case the second key resistance is broken, the pair will probably attempt to advance to 0.8408.

If EUR/GBP manages to breach the first key support at 0.8328, it will probably continue to slide and test 0.8308. With this second key support broken, the movement to the downside will probably continue to 0.8288.