Forex Market: EUR/GBP daily trading forecast

Yesterday’s trade saw EUR/GBP within the range of 0.7874-0.7945. The pair closed at 0.7892, losing 0.33% on a daily basis.

At 6:27 GMT today EUR/GBP was up 0.05% for the day to trade at 0.7896. The pair touched a daily high at 0.7900 at 6:15 GMT.

Fundamentals

ECB speculation

Yesterday speculations appeared that the European Central Bank (ECB) is considering the purchase of corporate bonds, starting December. EUR/USD plunged to a daily low at 1.2747, following this announcement, but managed to regain ground, after the ECB denied these speculations. Later in the day the pair continued to slide to a new low.

Bank of England minutes

At 8:30 GMT Bank of England (BoE) is to publish the minutes from its most recent meeting on policy. Released two weeks after the meeting itself, the minutes provide a full account of the policy discussion, including differences of view. They also record the votes of the individual members of the Monetary Policy Committee (MPC). On October 9th 7 members of the Committee probably voted in favor of keeping the benchmark interest rate unchanged, while 2 members probably supported a rate hike. In addition, all 9 members of the Committee probably voted to keep monetary stimulus unchanged. In case the central bank demonstrates a hawkish view in regard to inflation pressure in the UK, this heightens the probability of an interest rate hike, which usually has a positive effect on the pound. A dovish view, on the other hand, has the opposite effect.

The decision to keep borrowing costs intact was widely anticipated, as prior speeches from BoE Governor Mark Carney indicated that the benchmark rate may be raised by the spring of 2015.

Pivot Points

eur-gbp

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 0.7904. In case EUR/GBP manages to breach the first resistance level at 0.7933, it will probably continue up to test 0.7975. In case the second key resistance is broken, the pair will probably attempt to advance to 0.8004.

If EUR/GBP manages to breach the first key support at 0.7862, it will probably continue to slide and test 0.7833. With this second key support broken, the movement to the downside will probably continue to 0.7791.

The mid-Pivot levels for today are as follows: M1 – 0.7812, M2 – 0.7848, M3 – 0.7883, M4 – 0.7919, M5 – 0.7954, M6 – 0.7990.

In weekly terms, the central pivot point is at 0.7943. The three key resistance levels are as follows: R1 – 0.8035, R2 – 0.8140, R3 – 0.8232. The three key support levels are: S1 – 0.7838, S2 – 0.7746, S3 – 0.7641.

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