Forex Market: GBP/MXN daily forecast

During yesterday’s trading session GBP/MXN traded within the range of 21.651-21.762 and closed at 21.690.

At 7:35 GMT today GBP/MXN was adding 0.13% for the day to trade at 21.722. The pair touched a daily high at 21.723 at 7:34 GMT.

Fundamental view

The cost of living in the UK probably rose 1.7% in April from a year ago, according to the median analysts’ estimate. The Consumer Price Index (CPI) is the main measure of inflation in the UK for macroeconomic purposes and forms the basis of the inflation target set by the government. Every month about 120 000 samples are made, examining the change in prices of about 650 products. They represent the “market basket” of goods and services to the index itself. This is the percentage change compared to the same month a year earlier.

In monthly terms, the consumer price index (CPI) probably rose 0.3% last month, following a 0.2% gain in March.

In addition, core consumer prices probably increased 1.8% in April, compared to the same month a year ago, according to the median experts’ forecast. The core CPI, measures the change in prices of goods and services purchased by consumers, as they are taken out volatile components such as food, energy products, alcohol and tobacco. This is the percentage change compared to the same month a year earlier.

The Office for National Statistics will publish the official figures at 08:30 GMT. Better-than-expected readings will provide support to the sterling.

Technical view

According to Binary Tribune’s daily analysis, in case GBP/MXN manages to breach the first resistance level at 21.751, it will probably continue up to test 21.812. In case the second key resistance is broken, the pair will probably attempt to advance to 21.863.

If GBP/MXN manages to breach the first key support at 21.640, it will probably continue to slide and test 21.590. With this second key support broken, the movement to the downside will probably continue to 21.528.