Forex Market: EUR/GBP daily trading forecast

Friday’s trade saw EUR/GBP within the range of 0.7870-0.7943. The pair closed at 0.7927, gaining 0.47% on a daily basis.

At 8:27 GMT today EUR/GBP was down 0.7910 0.24% for the day to trade at 0.7910. The pair touched a daily low at 0.7908 at 8:20 GMT.

Fundamentals

United Kingdom

CBI Industrial Orders

The gauge of industrial orders in the United Kingdom probably remained unchanged at a reading of 3 during the three months to December, 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 optimism, this would have a bullish 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 0.7913. In case EUR/GBP manages to breach the first resistance level at 0.7957, it will probably continue up to test 0.7986. In case the second key resistance is broken, the pair will probably attempt to advance to 0.8030.

If EUR/GBP manages to breach the first key support at 0.7884, it will probably continue to slide and test 0.7840. With this second key support broken, the movement to the downside will probably continue to 0.7811.

The mid-Pivot levels for today are as follows: M1 – 0.7826, M2 – 0.7862, M3 – 0.7899, M4 – 0.7935, M5 – 0.7972, M6 – 0.8008.

In weekly terms, the central pivot point is at 0.7906. The three key resistance levels are as follows: R1 – 0.7978, R2 – 0.8028, R3 – 0.8100. The three key support levels are: S1 – 0.7856, S2 – 0.7784, S3 – 0.7734.