Forex Market: EUR/GBP daily trading forecast

Yesterday’s trade saw EUR/GBP within the range of 0.7799-0.7891. The pair closed at 0.7882, gaining 0.59% on a daily basis.

At 8:35 GMT today EUR/GBP was up 0.18% for the day to trade at 0.7899. The pair broke the first key weekly resistance and touched a daily high at 0.7903 at 8:10 GMT.

Fundamentals

Euro zone

Italian consumer inflation

Italys final annualized index of consumer prices (CPI) probably improved to 0.1% in October, confirming the preliminary estimate, reported on October 31st. In September consumer prices fell at an annualized rate of 0.2%. According to preliminary data, in October consumer inflation accelerated for the first time in six months as gas and communication prices decreased at a slower rate. Upward pressures came mostly from prices of regulated energy products (-2.6% in October, up from -6.6% in the prior month). Prices of gas dropped 5.9% last month, following an 11.1% plunge in September, while costs of communication services were 1.0% lower in October, following a 5.6% drop in the preceding month.

Key categories, included in Italys Consumer Price Index, are food and non-alcoholic beverages (accounting for 16% of total weight), transport (15%), restaurants and hotels (11%) and housing, water, electricity and other fuels (10%). Other categories are clothing and footwear (9%), furnishing and household equipment (8%), recreation and culture (8%) and health (also 8%). Communication, education, alcoholic beverages, tobacco and other goods and services comprise the remaining 15% of the index.

Nations final annualized CPI, evaluated in accordance with the harmonized methodology, probably remained at 0.2% in October, matching the preliminary HICP estimate, which was released on October 31st. The National Institute of Statistics (Istat) is to release the official CPI report at 9:00 GMT.

In case the annualized CPI accelerated more than projected, the euro would receive a certain support.

ECB Monthly Bulletin

At 9:00 GMT the European Central Bank (ECB) will release its Monthly Bulletin, including detailed analysis of current and future economic conditions and price stability risks in the Euro region from bank’s perspective. It is usually published one week after ECB’s interest rate decision.

Pivot Points

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 0.7857. In case EUR/GBP manages to breach the first resistance level at 0.7916, it will probably continue up to test 0.7949. In case the second key resistance is broken, the pair will probably attempt to advance to 0.8008.

If EUR/GBP manages to breach the first key support at 0.7824, it will probably continue to slide and test 0.7765. With this second key support broken, the movement to the downside will probably continue to 0.7732.

The mid-Pivot levels for today are as follows: M1 – 0.7749, M2 – 0.7795, M3 – 0.7841, M4 – 0.7887, M5 – 0.7933, M6 – 0.7979.

In weekly terms, the central pivot point is at 0.7836. The three key resistance levels are as follows: R1 – 0.7877, R2 – 0.7908, R3 – 0.7949. The three key support levels are: S1 – 0.7805, S2 – 0.7764, S3 – 0.7733.