Forex Market: EUR/GBP daily trading forecast

Yesterday’s trade saw EUR/GBP within the range of 0.7869-0.7902. The pair closed at 0.7894, gaining 0.22% on a daily basis.

At 7:57 GMT today EUR/GBP was down 0.03% for the day to trade at 0.7893. The pair touched a daily low at 0.7889 at 7:32 GMT.

Fundamentals

United Kingdom

Mortgage approvals

The number of mortgage approvals in the United Kingdom probably was 62 250 in September, according to experts’ expectations, down from 64 212 during the prior month. If so, this would be the lowest number since May, when there were 62 000 approved mortgages reported. Mortgage approvals are considered as a leading indicator, reflecting the health of country’s housing market. In case the number of mortgage approvals increases more than anticipated, this implies higher demand in nations housing sector and, respectively, a positive impulse for overall economy. Therefore, the national currency would also be supported. Bank of England will release the official numbers at 9:30 GMT.

Lending secured on dwellings, consumer credit

Net lending secured on dwellings in the United Kingdom, which include bridging loans made by banks and other lenders, probably was at the amount of 2.0 billion GBP in September, according to the median forecast by experts. A month ago mortgage lending amounted to 2.28 billion GBP.

Consumer credit in the country probably was at the amount of 0.800 billion GBP in September, down from 0.898 billion GBP in August. It represents borrowing by the UK personal sector (individuals only) to fund current expenditures on goods and services, which are a driving force behind economic growth. Within a booming economy, however, excessively high levels of consumer lending may be taken as an indication that economy itself is set to overheat. It is so, because individuals tend to borrow money in order to live beyond their means. Within a sluggish economy, in case lending to individuals expanded more than projected, this would usually have a bullish effect on the pound. Bank of England (BoE) is to release the official data at 9:30 GMT.

Pivot Points

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 0.7888. In case EUR/GBP manages to breach the first resistance level at 0.7908, it will probably continue up to test 0.7921. In case the second key resistance is broken, the pair will probably attempt to advance to 0.7941.

If EUR/GBP manages to breach the first key support at 0.7875, it will probably continue to slide and test 0.7855. With this second key support broken, the movement to the downside will probably continue to 0.7842.

The mid-Pivot levels for today are as follows: M1 – 0.7849, M2 – 0.7865, M3 – 0.7882, M4 – 0.7898, M5 – 0.7915, M6 – 0.7931.

In weekly terms, the central pivot point is at 0.7893. The three key resistance levels are as follows: R1 – 0.7925, R2 – 0.7976, R3 – 0.8008. The three key support levels are: S1 – 0.7842, S2 – 0.7810, S3 – 0.7759.