Forex Market: EUR/GBP daily outlook

During yesterday’s trading session EUR/GBP traded within the range of 0.8261-0.8314 and closed at 0.8268.

At 6:19 GMT today EUR/GBP was losing 0.02% for the day to trade at 0.8264. The pair touched a daily low at 0.8260 at 6:10 GMT.

Fundamental view

A survey by Halifax Bank of Scotland (HBOS), the largest mortgage lender in the United Kingdom, may show that home values rose at an annualized pace of 9.3% last month, according to preliminary estimates. In February prices of homes, purchased with loans from the bank, climbed 7.9%. In monthly terms, prices probably rose 0.5% in March, following another 2.4% increase in February. A higher than projected rate of increase would be considered as a bullish signal for the sterling. The official values will be released at 8:00 GMT.

Meanwhile, German factory orders, an indicator gauging the change in the total value of new purchase orders placed for durable and non-durable goods, probably rose 0.1% in February compared to a month ago, after a 1.2% increase in January. The annualized performance of the indicator probably showed a 6.8% increase in February, after another 8.4% climb in January. Factory orders are considered as a key indicator for analyzing the short-term trend in production in Germany. In case the gauge increases more than projected, the euro would receive support. The official data is scheduled to be released at 7:00 GMT.

Technical view

According to Binary Tribune’s daily analysis, in case EUR/GBP manages to breach the first resistance level at 0.8301, it will probably continue up to test 0.8334. In case the second key resistance is broken, the pair will probably attempt to advance to 0.8354.

If EUR/GBP manages to breach the first key support at 0.8248, 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 0.8195.