Forex Market: EUR/GBP daily trading forecast

Yesterday’s trade saw EUR/GBP within the range of 0.7513-0.7433. The pair closed at 0.7489, gaining 0.48% on a daily basis.

At 7:11 GMT today EUR/GBP was down 0.07% for the day to trade at 0.7485. The pair held in a daily range of 0.7472 – 0.7497.

Fundamentals

Euro area

French consumer confidence

Confidence among consumers in France probably improved in January, with the respective index coming in at a reading of 91.0, according to the median forecast by experts, from 90.0 in December. If so, this would be the highest level of confidence since May 2012.

The index of consumer confidence is based on a survey, encompassing about 2 000 households. Respondents give their opinion regarding past and future economic situation in France, past and future personal financial situation, unemployment, intention to make major purchases, current savings capacity and expected savings capacity.

The indicator is calculated using factor analysis technique. The index is then calculated in a way to measure the current confidence compared to the historic index values during the period 1987-2011. If the gauge shows a reading over 110, this suggests that optimism is higher than normal. If the index shows a reading under 90, this implies that pessimism is higher than normal. Readings of 100.0 signify neutrality.

Improving confidence is related with greater willingness to spend, therefore, higher than projected values may provide support to the euro. The National Institute of Statistics and Economic Studies (INSEE) is to publish the official data at 7:45 GMT.

Pivot Points

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 0.7478. In case EUR/GBP manages to breach the first resistance level at 0.7524, it will probably continue up to test 0.7558. In case the second key resistance is broken, the pair will probably attempt to advance to 0.7604.

If EUR/GBP manages to breach the first key support at 0.7444, it will probably continue to slide and test 0.7398. With this second key support broken, the movement to the downside will probably continue to 0.7364.

The mid-Pivot levels for today are as follows: M1 – 0.7381, M2 – 0.7421, M3 – 0.7461, M4 – 0.7501, M5 – 0.7541, M6 – 0.7581.

In weekly terms, the central pivot point is at 0.7539. The three key resistance levels are as follows: R1 – 0.7650, R2 – 0.7825, R3 – 0.7936. The three key support levels are: S1 – 0.7364, S2 – 0.7253, S3 – 0.7078.