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Forex Market: EUR/GBP daily forecast

During yesterday’s trading session EUR/GBP traded within the range of 0.8196-0.8235 and closed at 0.8218.

At 6:46 GMT today EUR/GBP was gaining 0.07% for the day to trade at 0.8226. The pair touched a daily high at 0.8226 at 6:45 GMT.

Fundamental view

Manufacturing activity in the United Kingdom probably accelerated in April, with the corresponding PMI rising to 55.4, according to the median forecast by analysts. In March the index came in at a reading of 55.3. The index is based on a monthly study of activity in the manufacturing sector and forecast for its future development. The study is comparable to that of ISM in the U.S, as both studies are based on the opinions of executives at manufacturing companies. Managers are asked about future demand and orders for materials. The index summarizes their views and gives an overall picture of the future in the manufacturing sector. The indicator is represented by index values ​​between 1 and 100, with levels above 50 signaling that the economic outlook is positive. Values ​​below 50 indicate that the situation is deteriorating.

Higher than expected values would provide a boost 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

Screenshot from 2014-05-01 09:51:07

According to Binary Tribune’s daily analysis, in case EUR/GBP manages to breach the first resistance level at 0.8237, it will probably continue up to test 0.8255. In case the second key resistance is broken, the pair will probably attempt to advance to 0.8276.

If EUR/GBP manages to breach the first key support at 0.8198, it will probably continue to slide and test 0.8177. With this second key support broken, the movement to the downside will probably continue to 0.8159.

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