Forex Market: GBP/SEK daily trading forecast

Yesterday’s trade saw GBP/SEK within the range of 11.6631-11.7025. The pair closed at 11.6793, losing 0.01% on a daily basis.

At 7:33 GMT today GBP/SEK was up 0.05% for the day to trade at 11.6731. The pair broke the first key daily resistance and touched a daily high at 11.7029.

Fundamentals

United Kingdom

The number of home loans in the United Kingdom, issued by the British Bankers’ Association (BBA), probably decreased to 38 500 in October from 39 271 in September. The latter has been the lowest number since August 2013, when 38 800 loans were issued. The BBA features the major banks in the country, which account for almost 60% of overall mortgage lending. The number of mortgage loans is considered as a leading indicator in regard to UK housing market conditions. As growth in mortgage lending signifies a healthy housing sector, which also contributes to overall economic activity, in case the number of loans rose more than projected, this would boost demand for the sterling. The BBA is to publish the official figure at 9:30 GMT.

Sweden

Producer prices in Sweden probably climbed at an annualized pace of 2.3% in October, according to expectations, following a 1.7% increase in September. If so, this would be the fastest rate of increase since August, when the annualized PPI rose 2.7%.

The Producer Price Index (PPI) measures changes in prices of goods and services either as they leave the production process, or as they enter it. Unlike the CPI, which measures price changes from the consumers perspective, the PPI basically gauges the prices received by domestic producers for their output, or the prices paid by domestic producers for their intermediate inputs. Generally speaking, a higher-than-expected PPI reading should be considered as having a bullish effect on the Swedish krone, as it suggests accelerated consumer inflation, while a lower-than-expected result would have a bearish effect. The official data by the Statistics Sweden is due out at 8:30 GMT.

Pivot Points

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 11.6816. In case GBP/SEK manages to breach the first resistance level at 11.7002, it will probably continue up to test 11.7210. In case the second key resistance is broken, the pair will probably attempt to advance to 11.7396.

If GBP/SEK manages to breach the first key support at 11.6608, it will probably continue to slide and test 11.6422. With this second key support broken, the movement to the downside will probably continue to 11.6214.

The mid-Pivot levels for today are as follows: M1 – 11.6318, M2 – 11.6515, M3 – 11.6712, M4 – 11.6909, M5 – 11.7106, M6 – 11.7303.

In weekly terms, the central pivot point is at 11.6396. The three key resistance levels are as follows: R1 – 11.7740, R2 – 11.8603, R3 – 11.9947. The three key support levels are: S1 – 11.5533, S2 – 11.4189, S3 – 11.3326.