Forex Market: EUR/GBP daily forecast

During yesterday’s trading session EUR/GBP traded within the range of 0.7904-0.7917 and closed at 0.7912, gaining 0.05% for the day.

At 6:16 GMT today EUR/GBP was up 0.01% for the day to trade at 0.7913. The pair touched a daily high at 0.7916 at 4:25 GMT.

Fundamental view

Euro zone

Annualized retail sales in Spain probably rose at a pace of 1.1% in June, according to the median estimate by experts, following another 0.5% gain in May. This indicator reflects the change in the total value of inflation-adjusted sales by retailers in the country and provides key information regarding consumer spending trend in a shorter term, while the latter is a key driving force behind economic growth. Companies, operating in the retail sector, provide monthly data regarding 4 main categories: food, personal equipment, household appliances and additional information in regard to other types of consumer goods. In case the retail sales index increased at a faster than expected pace, this would have a certain bullish effect on the euro. The National Institute of Statistics is expected to release the official report at 7:00 GMT.

United Kingdom

The number of mortgage approvals in the United Kingdom probably increased to 62 600 in June, according to experts’ expectations, from 61 707 during the prior month. Mortgage approvals are considered as a leading indicator, reflecting the health of country’s housing market. In case the number of mortgage approvals increases more than anticipated, this implies housing sector strength and a positive impulse for the entire economy. Therefore, the national currency would also be supported. Bank of England will release the official numbers at 8:30 GMT.

Net lending secured on dwellings in the United Kingdom, which include bridging loans made by banks and other lenders, probably was at the amount of 1.90 billion GBP in June, according to the median forecast by experts. A month ago mortgage lending amounted to 1.99 billion GBP.

Consumer credit in the country probably expanded to 0.800 billion GBP in June from 0.740 billion GBP in May. It represents borrowing by the UK personal sector (individuals only) to fund current expenditures on goods and services, which are a driving force behind economic growth. In case lending to individuals expanded more than expected, this would have a bullish effect on the pound. Bank of England is to release the official data at 8:30 GMT.

Technical view

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 0.7911. In case EUR/GBP manages to breach the first resistance level at 0.7918, it will probably continue up to test 0.7924. In case the second key resistance is broken, the pair will probably attempt to advance to 0.7931.

If EUR/GBP manages to breach the first key support at 0.7905, it will probably continue to slide and test 0.7898. With this second key support broken, the movement to the downside will probably continue to 0.7892.

The mid-Pivot levels for today are as follows: M1 – 0.7895, M2 – 0.7902, M3 – 0.7908, M4 – 0.7915, M5 – 0.7921, M6 – 0.7928.

In weekly terms, the central pivot point is at 0.7908. The three key resistance levels are as follows: R1 – 0.7943, R2 – 0.7973, R3 – 0.8008. The three key support levels are: S1 – 0.7878, S2 – 0.7843, S3 – 0.7813.