Forex Market: GBP/NOK daily trading forecast

Yesterday’s trade saw GBP/NOK within the range of 10.2410-10.3080. The pair closed at 10.2785, gaining 0.31% on a daily basis.

At 6:53 GMT today GBP/NOK was down 0.17% for the day to trade at 10.2620. The pair touched a daily low at 10.2565 at 6:50 GMT.

Fundamental view

United Kingdom

Annualized retail sales in the United Kingdom probably rose 3.0% in July, according to the median forecast by experts, after in June sales climbed 3.6%. If so, this would be the slowest rate of increase since February. In monthly terms, retail sales probably increased 0.4% during July. This is a short-term indicator, which provides key information about consumption on a national scale. Annualized retail sales, without taking into account fuel sales, probably rose 3.4% in July. Lower retail sales suggest weaker consumer demand, confidence and economic growth, respectively. Therefore, in case the index of retail sales increased at a slower than projected pace, this would have a bearish effect on the sterling. The Office for National Statistics (ONS) is expected to publish the official report at 8:30 GMT.

Norway

Norwegian Gross Domestic Product probably expanded 0.5% during the second quarter of the year compared to the first quarter, after in Q1 economy grew 0.3%. Annualized GDP rose 3.9% in the first quarter, which has been the fastest growth rate since Q2 2012, when Norways economy expanded 4.7%.

The GDP represents the total monetary value of all goods and services produced by one nation over a specific period of time. Higher rates of growth suggest that interest rates may follow the same direction. Higher interest rates, on the other hand, will usually attract more investors, willing to purchase assets in the country, while, at the same time, this will increase demand for the local currency. Therefore, in case economic growth in Norway exceeded expectations, this would provide support to the krone. Statistics Norway is expected to publish the GDP report at 8:00 GMT.

Technical view

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 10.2758. In case GBP/NOK manages to breach the first resistance level at 10.3107, it will probably continue up to test 10.3428. In case the second key resistance is broken, the pair will probably attempt to advance to 10.3777.

If GBP/NOK manages to breach the first key support at 10.2437, it will probably continue to slide and test 10.2088. With this second key support broken, the movement to the downside will probably continue to 10.1767.

The mid-Pivot levels for today are as follows: M1 – 10.1928, M2 – 10.2263, M3 – 10.2598, M4 – 10.2933, M5 – 10.3268, M6 – 10.3603.

In weekly terms, the central pivot point is at 10.2918. The three key resistance levels are as follows: R1 – 10.3482, R2 – 10.4558, R3 – 10.5122. The three key support levels are: S1 – 10.1842, S2 – 10.1278, S3 – 10.0202.