Forex Market: EUR/GBP daily trading outlook

Yesterday’s trade saw EUR/GBP within the range of 0.7836-0.7798. The pair closed at 0.7815, losing 0.15% on a daily basis.

At 7:57 GMT today EUR/GBP was up 0.06% for the day to trade at 0.7821. The pair held in a daily range of 0.7813-0.7832.

Fundamental view

Eurozone

Eurostat is expected to report at 10:00 GMT that producer prices within the Euro region slid by an annualized 1.5% in September, compared to a 1.4% decline in August. Month-on-month, the Producer Price Index is expected to have remained unchanged in September, following a 0.1% deflation in the preceding month.

Producer inflation measures average changes in prices received by domestic producers for their output. It’s a leading price of consumer price inflation.

Britain

Activity growth in United Kingdom’s sector of construction probably slowed down in October, but still posted a hefty expansion, with the corresponding PMI expected to come in at 63.5, down from 64.2 in September.

The index is based on a survey encompassing managers of companies operating in the construction sector. They are asked about their estimate regarding current business conditions (new orders, output, employment, demand in the future). Values above the key level of 50.0 signify that activity in the sector has expanded. Higher-than-projected readings would certainly heighten the appeal of the pound. The Chartered Institute of Purchasing and Supply (CIPS) is to announce the official reading at 9:30 GMT.

Pivot points

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 0.7816. In case EUR/GBP manages to breach the first resistance level at 0.7835, it may continue up to test 0.7854. In case the second key resistance is broken, the pair could advance to 0.7873.

If EUR/GBP manages to breach the first key support at 0.7797, it may to slide and test 0.7778. With this second key support broken, the movement to the downside could continue to 0.7759.

The mid-Pivot levels for today are as follows: M1 – 0.7769, M2 – 0.7788, M3 – 0.7807, M4 – 0.7826, M5 – 0.7845, M6 – 0.7864.

In weekly terms, the central pivot point is at 0.7856. The three key resistance levels are as follows: R1 – 0.7891, R2 – 0.7953, R3 – 0.7988. The three key support levels are: S1 – 0.7794, S2 – 0.7759, S3 – 0.7697.