Forex Market: EUR/GBP daily forecast

Yesterday’s trade saw EUR/GBP within the range of 0.7971-0.7992. The pair closed at 0.7974, losing 0.20% on a daily basis.

At 6:15 GMT today EUR/GBP was down 0.01% for the day to trade at 0.7973. The pair touched a daily low at 0.7970 at 1:40 GMT.

Fundamental view

Euro zone

Italian annualized final consumer price index for June probably confirmed the preliminary CPI of 0.1%, according to expectations. Nations annualized final CPI for July, evaluated in accordance with the harmonized methodology, probably also matched the preliminary HICP estimate of 0.0%, which was reported on July 31st. In case consumer inflation accelerated more than expected, this would support demand for the euro. The National Institute of Statistics is to release the official CPI report at 8:00 GMT.

The gauge of economic sentiment in Germany probably plunged to 18.2 in August, according to the median forecast by experts. In July the index came in at a reading of 27.10. The indicator has been falling since January this year.

The ZEW (Zentrum für Europäische Wirtschaftsforschung) economic expectations index is published on a monthly basis. The study encompasses up to 350 financial and economic analysts. The indicator reflects the difference between the share of analysts, that are optimistic and those, that are pessimistic about the expected economic development in Germany over the next six months. A positive value indicates that the proportion of optimists is larger than that of pessimists. A ZEW reading of -100 suggests that all analysts are pessimistic about the current developments and expect economic conditions to deteriorate. A ZEW reading of 100 implies that all analysts are optimistic about the current situation and expect conditions to improve. A ZEW reading of 0 indicates neutrality.

The index of current assessment in Germany probably dropped to 55.5 in August from 61.8 in the prior month.

In addition, the ZEW economic sentiment index in the Euro zone probably fell to 41.3 this month from 48.1 during July.

Higher-than-projected readings would certainly provide a boost to the common currency. The official data is scheduled to be released at 9:00 GMT.

Technical view

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 0.7979. In case EUR/GBP manages to breach the first resistance level at 0.7987, it will probably continue up to test 0.8000. In case the second key resistance is broken, the pair will probably attempt to advance to 0.8008.

If EUR/GBP manages to breach the first key support at 0.7966, it will probably continue to slide and test 0.7958. With this second key support broken, the movement to the downside will probably continue to 0.7945.

The mid-Pivot levels for today are as follows: M1 – 0.7952, M2 – 0.7962, M3 – 0.7973, M4 – 0.7983, M5 – 0.7994, M6 – 0.8004.

In weekly terms, the central pivot point is at 0.7970. The three key resistance levels are as follows: R1 – 0.8024, R2 – 0.8052, R3 – 0.8106. The three key support levels are: S1 – 0.7942, S2 – 0.7888, S3 – 0.7860.