Forex Market: EUR/GBP daily trading forecast

Written by Miroslav Marinov

Miroslav Marinov, a financial news editor at TradingPedia, is engaged with observing and reporting on the tendencies in the Foreign Exchange Market, as currently his focus is set on the major currencies of eight developed nations worldwide.

, | Updated: October 30, 2024

Friday’s trade saw EUR/GBP within the range of 0.7818-0.7871. The pair closed at 0.7841, losing 0.08% on a daily basis.

At 6:21 GMT today EUR/GBP was up 0.01% for the day to trade at 0.7837. The pair touched a daily high at 0.7841 during early Asian trade.

Fundamental view

Euro zone

Confidence among investors in the Euro zone was probably lower during the current month, with the corresponding index coming in at a reading of -12.1. In September it stood at -9.8. The index is based on results from the Sentix survey, one of the most prominent surveys, reflecting investors’ opinion in Germany. It encompasses 2 800 respondents, with 510 of them being institutional investors. Respondents present their expectations regarding ten different markets for a period of one and six months. Readings above zero indicate that respondents were predominantly optimistic, while readings below zero show pessimism. Lower than expected readings would have a bearish effect on the common currency. The official result is expected at 8:30 GMT.

United Kingdom

HBOS home price index

A survey by Halifax Bank of Scotland (HBOS), the largest mortgage lender in the United Kingdom, may show that home values rose at an annualized pace of 9.0% in September, according to preliminary estimates. In August prices of homes, purchased with loans from the bank, climbed 9.7%. In monthly terms, prices probably rose 0.1% in September, following another 0.1% increase in August. A higher than projected rate of increase would be considered as a bullish signal for the sterling. The official values will be released at 7:00 GMT.

Goldman Sachs rate projections

Bank of England (BoE) will probably raise borrowing costs before the Federal Reserve does, but the pace will probably be slower, according to projections by Goldman Sachs analysts. BoE will probably begin raising its benchmark rate during the first quarter of 2015, while the Fed – in Q3 2015. In the UK the pace of increase will probably be 75 basis points annually compared to a pace of 100 to 125 basis points in the United States.

Technical view

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 0.7843. In case EUR/GBP manages to breach the first resistance level at 0.7869, it will probably continue up to test 0.7896. In case the second key resistance is broken, the pair will probably attempt to advance to 0.7922.

If EUR/GBP manages to breach the first key support at 0.7816, it will probably continue to slide and test 0.7790. With this second key support broken, the movement to the downside will probably continue to 0.7763.

The mid-Pivot levels for today are as follows: M1 – 0.7777, M2 – 0.7803, M3 – 0.7830, M4 – 0.7856, M5 – 0.7883, M6 – 0.7909.

In weekly terms, the central pivot point is at 0.7825. The three key resistance levels are as follows: R1 – 0.7887, R2 – 0.7932, R3 – 0.7994. The three key support levels are: S1 – 0.7780, S2 – 0.7718, S3 – 0.7673.