Forex Market: EUR/GBP daily outlook

During yesterday’s trading session EUR/GBP traded within the range of 0.8262-0.8306 and closed at 0.8294.

At 6:17 GMT today EUR/GBP was gaining 0.10% for the day to trade at 0.8303. The pair touched a daily high at 0.8305 at 6:15 GMT.

Fundamental view

The number of unemployed people in Spain probably decreased by 5 300 in March, according to the median estimate by experts. In February people looking for a job were 1 949 less. In case the number of the jobless diminishes more than projected, this would have a bullish effect on the euro. The official data is due out at 8:00 GMT.

Euro zones final annualized Gross Domestic Product probably expanded 0.5% during the last quarter of 2013, which would match the second (revised) growth estimate, announced on March 5th. The quarterly GDP in the region probably rose 0.3% in Q4, again matching the revised estimate. In case regions economy expands more than expected, the single currency would receive support. Eurostat is to publish the official report at 10:00 GMT.

Meanwhile, activity in United Kingdoms sector of construction probably increased in March, with the corresponding PMI coming in at 63.2. In February the index stood at 62.6. Readings above the key level of 50.0 are indicative of expansion in the sector. Higher than projected values would be supportive for the sterling. The Chartered Institute of Purchasing and Supply (CIPS) is to announce the results from its monthly survey 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 0.8313, it will probably continue up to test 0.8331. In case the second key resistance is broken, the pair will probably attempt to advance to 0.8357.

If EUR/GBP manages to breach the first key support at 0.8269, it will probably continue to slide and test 0.8243. With this second key support broken, the movement to the downside will probably continue to 0.8225.