Forex Market: GBP/NOK daily forecast

During yesterday’s trading session GBP/NOK traded within the range of 10.5715-10.6325 and closed at 10.6155, gaining 0.36% on a daily basis.

At 8:07 GMT today GBP/NOK was down 0.03% for the day to trade at 10.6092. The pair touched a daily low at 10.6010 at 4:30 GMT.

Fundamental view

United Kingdom

Activity in United Kingdom’s sector of manufacturing probably slowed down a bit in July, with the corresponding PMI coming in at a reading of 57.2, according to the median forecast by experts, down from 57.5 in June. The index is based on a survey, encompassing managers of companies, that operate in sectors such as manufacturing, mining, utilities. They are asked about their estimate in regard to current business conditions in the sector in terms of new orders, output, employment, demand in the future. Values above the key level of 50.0 signify that activity in the sector has expanded. Higher than projected PMI readings would certainly heighten the appeal of the sterling. The Chartered Institute of Purchasing and Supply (CIPS) is expected to announce the official reading at 8:30 GMT.

Norway

Activity in Norwegian manufacturing probably increased in July, with the respective PMI entering the zone of expansion at 50.2 from 49.6 in the previous month. The index is based on monthly surveys carried out among 300 purchasing managers in nations manufacturing industry and represents the weighted average of five different sub-gauges regarding the conditions in production, order books, stock of purchases, delivery time and workforce. A reading above the key level of 50.0 indicates optimism among respondents in the survey. Higher than anticipated values of the PMI would boost the krone. Statistics Norway is scheduled to announce the results from the survey at 7:00 GMT.

Technical view

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 10.6065. In case GBP/NOK manages to breach the first resistance level at 10.6415, it will probably continue up to test 10.6675. In case the second key resistance is broken, the pair will probably attempt to advance to 10.7025.

If GBP/NOK manages to breach the first key support at 10.5805, it will probably continue to slide and test 10.5455. With this second key support broken, the movement to the downside will probably continue to 10.5195.

The mid-Pivot levels for today are as follows: M1 – 10.5325, M2 – 10.5630, M3 – 10.5935, M4 – 10.6240, M5 – 10.6545, M6 – 10.6850.

In weekly terms, the central pivot point is at 10.5640. The three key resistance levels are as follows: R1 – 10.6216, R2 – 10.6801, R3 – 10.7377. The three key support levels are: S1 – 10.5055, S2 – 10.4479, S3 – 10.3894.