Forex Market: EUR/GBP daily forecast

During yesterday’s trading session EUR/GBP traded within the range of 0.7983-0.8032 and closed at 0.7996.

At 7:15 GMT today EUR/GBP was gaining 0.09% for the day to trade at 0.8001. The pair touched a daily high at 0.7984 at 7:00 GMT.

Fundamental view

Euro zone

Euro zone’s gauge of economic sentiment probably improved to a reading of 103.0 in June from 102.7 in the previous month, that was the strongest since June 2011.

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

The final reading of the British GDP probably matched the preliminary reading of 3.1% in the first quarter compared to a year ago. The preliminary reading was estimated on May 22.

The Gross Domestic Product is an integral part of the UK public account and measures the total economic activity of the country. GDP is still referred to as one of the main “common indicators” for economic activity and presents economic growth in the last quarter. This is the third calculation of the indicator based on production data and is published twelve weeks after the end of the quarter. This is a final value of the indicator and is presented as a percentage change compared to the corresponding quarter a year earlier.

The Office for National Statistics is scheduled to release an official report at 08:30 GMT. In case, the British GDP grew at a faster-than-expected pace, sterling’s demand will be heightened.

Technical view

According to Binary Tribune’s daily analysis, in case EUR/GBP manages to breach the first resistance level at 0.8024, it will probably continue up to test 0.8053. In case the second key resistance is broken, the pair will probably attempt to advance to 0.8073.

If EUR/GBP manages to breach the first key support at 0.7975, it will probably continue to slide and test 0.7955. With this second key support broken, the movement to the downside will probably continue to 0.7926.