Forex Market: GBP/SEK daily trading forecast

Yesterday’s trade saw GBP/SEK within the range of 11.5036-11.6013. The pair closed at 11.5749, gaining 0.45% on a daily basis.

At 9:07 GMT today GBP/SEK was up 0.01% for the day to trade at 11.5878. The pair touched a daily high at 11.6080 during early Asian trade.

Fundamentals

United Kingdom

Retail Sales

Annualized retail sales in the United Kingdom probably rose at a rate of 3.8% in October, according to the median forecast by experts, after in September sales climbed 2.7%. If so, this would be the fastest annual rate of increase since April, when the index of sales gained 6.5%. In monthly terms, retail sales probably rose 0.3% during October, making up for the 0.3% drop in the prior month. Annualized retail sales, without taking into account fuel sales, probably rose 4.2% in October, following another 3.1% gain in September.

This is a short-term indicator, which provides key information about consumption on a national scale. Higher retail sales suggest stronger consumer demand, confidence and economic growth, respectively. Therefore, in case the index of retail sales increased at a faster-than-projected pace, this would be pound positive. The Office for National Statistics is expected to publish the official report at 9:30 GMT.

CBI Industrial Orders

The gauge of industrial orders in the United Kingdom probably remained unchanged at a reading of -6 during the three months to November, according to expectations. This indicator reflects the net balance between companies, that registered an increase in industrial orders during the respective period of three months and those, that registered a drop. It is the oldest indicator, released from the UK private sector, to show the development tendency in countrys industrial sector. The Industrial Trends Survey by the Confederation of British Industry (CBI) provides expert qualitative opinion from senior manufacturing executives, on past and expected trends in output, exports, prices, costs, investment intentions, business confidence and capacity utilization. A level above zero suggests that volume of orders is projected to increase, while a level below zero indicates that expectations point to lower volumes. If the survey showed predominant pessimism, this would usually have a bearish effect on the sterling. The CBI will announce the results from its survey, encompassing 17 industries, at 11:00 GMT.

Pivot Points

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 11.5599. In case GBP/SEK manages to breach the first resistance level at 11.6163, it will probably continue up to test 11.6576. In case the second key resistance is broken, the pair will probably attempt to advance to 11.7140.

If GBP/SEK manages to breach the first key support at 11.5186, it will probably continue to slide and test 11.4622. With this second key support broken, the movement to the downside will probably continue to 11.4209.

The mid-Pivot levels for today are as follows: M1 – 11.4416, M2 – 11.4904, M3 – 11.5393, M4 – 11.5881, M5 – 11.6370, M6 – 11.6858.

In weekly terms, the central pivot point is at 11.6530. The three key resistance levels are as follows: R1 – 11.7435, R2 – 11.9137, R3 – 12.0042. The three key support levels are: S1 – 11.4828, S2 – 11.3923, S3 – 11.2221.