Forex Market: EUR/GBP daily outlook

During Friday’s trading session EUR/GBP traded within the range of 0.8246-0.8282 and closed at 0.8264.

At 6:52 GMT today EUR/GBP was gaining 0.03% for the day to trade at 0.8266. The pair touched a daily high at 0.8270 at 6:00 GMT.

Fundamental view

Euro zone’s preliminary annualized index of consumer prices, evaluated in accordance with Eurostat’s harmonized methodology, probably slowed down to 0.6% in March from 0.7% in February. The rate would still remain quite far from European Central Bank’s inflation target of 2%, which may prompt the central bank to introduce additional measures at its upcoming policy meeting later in the week. The official data is expected at 9:00 GMT. In case annualized consumer prices slow down more than projected, this would have a bearish effect upon the euro.

The number of mortgage approvals in the United Kingdom probably decreased to 75 000 in February from 76 947 during the preceding month. A larger than projected number would certainly provide support to the pound.

Lending to consumers in the country probably was at the amount of 0.7 billion GBP last month, or the same as in January.

Lending secured on dwellings probably expanded to 1.5 billion GBP during February from 1.4 billion GBP in January. The official numbers are to be released 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 0.8282, it will probably continue up to test 0.8300. In case the second key resistance is broken, the pair will probably attempt to advance to 0.8318.

If EUR/GBP manages to breach the first key support at 0.8246, it will probably continue to slide and test 0.8228. With this second key support broken, the movement to the downside will probably continue to 0.8210.