Forex Market: EUR/GBP daily trading forecast

Yesterday’s trade saw EUR/GBP within the range of 0.7406-0.7448. The daily low has also been the lowest level since January 26th, when a low of 0.7402 was recorded. The pair closed at 0.7421, losing 0.28% on a daily basis.

At 7:38 GMT today EUR/GBP was down 0.02% for the day to trade at 0.7420. The pair touched a daily low at 0.7416 during early Asian trade.

Fundamentals

Greek bridge plan

Greece is seeking support for a bridge plan at the amount of EUR 10 billion. The countrys Finance Minister Yanis Varoufakis will ask for additional 8 billion euros in the stock of Treasury Bills Greece is allowed, according to a government official who asked not to be identified, because the negotiations are confidential.

“The bridge must be built by fiscal policy because it’s forbidden for monetary policy to finance states,” the president of German Bundesbank, Jens Weidmann, said in Istanbul in e-mailed response to questions on Tuesday, cited by Bloomberg. “The question of a bridge loan via T-bills has as a precondition, in my view, that it’s not a bridge to nowhere.”

At the same time, Germanys Chancellor Angela Merkel said in Washington on Monday that Greek talks should be based on the existing aid programs. “I’m waiting for Greece to come forward with a viable recommendation and then we’ll talk about it”, Angela Merkel noted.

The Eurogroup is to hold an emergency meeting today.

Pivot Points

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 0.7425. In case EUR/GBP manages to breach the first resistance level at 0.7444, it will probably continue up to test 0.7467. In case the second key resistance is broken, the pair will probably attempt to advance to 0.7486.

If EUR/GBP manages to breach the first key support at 0.7402, it will probably continue to slide and test 0.7383. With this second key support broken, the movement to the downside will probably continue to 0.7360.

The mid-Pivot levels for Monday are as follows: M1 – 0.7372, M2 – 0.7393, M3 – 0.7414, M4 – 0.7435, M5 – 0.7456, M6 – 0.7477.

In weekly terms, the central pivot point is at 0.7477. The three key resistance levels are as follows: R1 – 0.7541, R2 – 0.7659, R3 – 0.7723. The three key support levels are: S1 – 0.7359, S2 – 0.7295, S3 – 0.7177.