Forex Market: EUR/GBP daily trading forecast

Yesterday’s trade saw EUR/GBP within the range of 0.7876-0.7835. The pair closed at 0.7872, gaining 0.06% on a daily basis.

At 8:28 GMT today EUR/GBP was up 0.13% for the day to trade at 0.7879. The pair ranged between 0.7860 and 0.7880 during the day.

Fundamental view

Eurozone

Spain’s statistics agency (Instituto Nacional de Estadistica) reported at 7:00 GMT that the country’s industrial production expanded at an annualized 0.6% in August, following an upward-revised 0.9% growth in the previous month. Analysts had expected Spain’s industrial output to have grown by 1.4%.

Yesterday, Destatis reported that Germany’s industrial production contracted by 4% in August, the most since 2009, in the latest sign of deteriorating economic conditions in the leading EU economy, and the Eurozone as a whole. This comes after a downward-revised 1.6% expansion in July, while analysts had projected a moderate 1.5% decline in industrial output.

United Kingdom

A survey by Halifax Bank of Scotland (HBOS), the largest mortgage lender in the United Kingdom, showed that home values rose at an annualized pace of 9.6% last month, matching analysts projections. In August, prices of homes, purchased with loans from the bank, climbed 9.7%.

In monthly terms, prices rose by a better-than-expected 0.6%, compared to expectations for a 0.2% gain, while Augusts reading was revised down from 0.1% to show a flat value. A higher than projected rate of increase is generally considered as a bullish signal for the sterling.

Technical view

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 0.7861. In case EUR/GBP manages to breach the first resistance level at 0.7887, it will probably continue up to test 0.7902. In case the second key resistance is broken, the pair will probably attempt to advance to 0.7928.

If EUR/GBP manages to breach the first key support at 0.7846, it will probably continue to slide and test 0.7820. With this second key support broken, the movement to the downside will probably continue to 0.7805.

The mid-Pivot levels for today are as follows: M1 – 0.7813, M2 – 0.7833, M3 – 0.7854, M4 – 0.7874, M5 – 0.7895, M6 – 0.7915.