Forex Market: EUR/GBP daily trading forecast

Friday’s trade saw EUR/GBP within the range of 0.7850-0.7923. The pair closed at 0.7882, losing 0.20% on a daily basis.

At 7:42 GMT today EUR/GBP was up 0.14% for the day to trade at 0.7895. The pair touched a daily high at 0.7901.

Fundamentals

Euro zone

Sentix Investor Sentiment

Confidence among investors in the Euro zone probably continued to worsen during the current month, with the corresponding index coming in at a reading of -13.5. In November it stood at -11.87. If so, this would be the fourth consecutive month, during which the gauge occupied negative territory. The index is based on results from the SENTIX survey, one of the most prominent surveys, reflecting investors’ opinion in Germany. It encompasses 2 800 respondents, with 510 of them being institutional investors. Respondents present their expectations regarding ten different markets for a period of one and six months. Readings above zero indicate that respondents were predominantly optimistic, while readings below zero show pessimism. Lower-than-expected readings would have a bearish effect on the common currency. The official index value is due out at 9:30 GMT.

Pivot Points

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 0.7885. In case EUR/GBP manages to breach the first resistance level at 0.7920, it will probably continue up to test 0.7958. In case the second key resistance is broken, the pair will probably attempt to advance to 0.7993.

If EUR/GBP manages to breach the first key support at 0.7847, it will probably continue to slide and test 0.7812. With this second key support broken, the movement to the downside will probably continue to 0.7774.

The mid-Pivot levels for today are as follows: M1 – 0.7793, M2 – 0.7830, M3 – 0.7866, M4 – 0.7903, M5 – 0.7939, M6 – 0.7976.

In weekly terms, the central pivot point is at 0.7897. The three key resistance levels are as follows: R1 – 0.7962, R2 – 0.8042, R3 – 0.8107. The three key support levels are: S1 – 0.7817, S2 – 0.7752, S3 – 0.7672.