Forex Market: EUR/GBP daily forecast

During yesterday’s trading session EUR/GBP traded within the range of 0.8086-0.8145 and closed at 0.8097.

At 7:11 GMT today EUR/GBP was adding 0.2% for the day to trade at 0.8128. The pair touched a daily high at 0.8129 at 7:10 GMT, breaching the first key resistance.

Fundamental view

Euro zone

Euro zone’s gauge of economic sentiment probably improved to a reading of 102.2 in May from 102.0 in the previous month, according to the median analysts’ estimate.

This is a compound index, that is comprised of five sub-indexes, reflecting sentiment in different sectors of the economy. It includes consumer confidence, industrial confidence, confidence in the sector of services, confidence in the retail trade sector and confidence in the sector of construction.

Readings above the key level of 100.0 are indicative that optimistic forecasts overwhelm pessimistic ones. The more readings distance from it, the stronger the economic confidence is. The official reading is due out at 9:00 GMT.

United Kingdom

At 10:00 GMT, the Confederation of British Industry will release the results from its monthly CBI distributive survey. The index probably jump to 35 this month, from 30
in the previous.

The indicator reflects the short-term trends in the sectors of retail and wholesale in the UK. The indicator is closely watched by the Bank of England as it weighs on the formulation of the central bank’s and the government’s economic policy. This is a highly valuable barometer of trade on the main streets. It represents a survey among executives and managers and regards sales, orders and inventories. A higher than projected reading will heighten pound’s appeal.

Technical view

According to Binary Tribune’s daily analysis, in case EUR/GBP manages to breach the first resistance level at 0.8123, it will probably continue up to test 0.8135. In case the second key resistance is broken, the pair will probably attempt to advance to 0.8154.

If EUR/GBP manages to breach the first key support at 0.8092, it will probably continue to slide and test 0.8073. With this second key support broken, the movement to the downside will probably continue to 0.8061.