Forex Market: EUR/GBP daily trading forecast

Friday’s trade saw EUR/GBP within the range of 0.8016 – 0.7980. The pair closed at 0.7992, losing 0.21% on a daily basis.

At 7:41 GMT today EUR/GBP was down 0.38% for the day to trade at 0.7962. The pair touched a daily low at 0.7960 at 7:20 GMT.

Fundamental view

Germany

CESifo Group is to release its Business Climate Index today at 8:00 GMT, as well as its Current Assessment and Business Expectations indicators. The latter two are sub-indexes of the Business Climate Index. The Current Assessment gauges current business conditions in Germany, without taking into account future projections, while the Business Expectations index rates anticipations for the next six months.

Logically, among the three, the general Business Climate index has most weight, being eyed as an early indicator of current conditions and future expectations altogether. Prepared by CESifo Group, it is compiled from surveys conducted among 7 000 enterprises regarding their business assessment and short-term planning.

A rise in the readings, and especially better-than-expected values, are seen as bullish for the euro and vice versa. The IFO Current Assessment index is expected to have eased to 112.0 in August from 112.9 in July, while the IFO Expectations index is projected at 102.0 from 103.4 a month earlier. The composite Business Climate Index is projected to have fallen by 1 basis point to 107.0 from the preceding period.

Technical view

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 0.7996. In case EUR/GBP manages to breach the first resistance level at 0.8012, it will probably continue up to test 0.8032. In case the second key resistance is broken, the pair will probably attempt to advance to 0.8048.

If EUR/GBP manages to breach the first key support at 0.7976, it will probably continue to slide and test 0.7960. With this second key support broken, the movement to the downside will probably continue to 0.7940.

The mid-Pivot levels for today are as follows: M1 – 0.7950, M2 – 0.7968, M3 – 0.7986, M4 – 0.8004, M5 – 0.8022, M6 – 0.8040.

In weekly terms, the central pivot point is at 0.7997. The three key resistance levels are as follows: R1 – 0.8023, R2 – 0.8055, R3 – 0.8081. The three key support levels are: S1 – 0.7965, S2 – 0.7939, S3 – 0.7907.