Forex Market: EUR/GBP daily trading forecast

Friday’s trade saw EUR/GBP within the range of 0.7817-0.7870. The pair closed at 0.7827, losing 0.50% on a daily basis.

At 7:27 GMT today EUR/GBP was down 0.07% for the day to trade at 0.7824. The pair touched a daily low at 0.7822.

Fundamentals

Euro zone

Italian Consumer Confidence Index

Confidence among consumers in Italy probably remained almost unchanged in December, with the respective gauge coming in at a reading of 100.5, according to expectations, up from 100.2 in November. The latter has been the lowest level of confidence since February, when the index was reported at 97.7. As an indicator, the consumer confidence index reveals what consumers’ financial prospects and willingness to spend are. Higher confidence is usually related to a sound financial state and a greater willingness to make purchases, including large-ticket ones, and vice versa. Therefore, in case the gauge showed a larger improvement than anticipated in December, this would provide a limited support to the common currency. The Istat is to release the official data at 9:00 GMT.

Pivot Points

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 0.7838. In case EUR/GBP manages to breach the first resistance level at 0.7859, it will probably continue up to test 0.7891. In case the second key resistance is broken, the pair will probably attempt to advance to 0.7912.

If EUR/GBP manages to breach the first key support at 0.7806, it will probably continue to slide and test 0.7785. With this second key support broken, the movement to the downside will probably continue to 0.7753.

The mid-Pivot levels for today are as follows: M1 – 0.7769, M2 – 0.7796, M3 – 0.7822, M4 – 0.7849, M5 – 0.7875, M6 – 0.7902.

In weekly terms, the central pivot point is at 0.7844. The three key resistance levels are as follows: R1 – 0.7872, R2 – 0.7917, R3 – 0.7945. The three key support levels are: S1 – 0.7799, S2 – 0.7771, S3 – 0.7726.