Yesterday’s trade saw EUR/GBP within the range of 0.7860-0.7933. The pair closed at 0.7896, gaining 0.34% on a daily basis.
At 8:02 GMT today EUR/GBP was down 0.03% for the day to trade at 0.7894. The pair touched a daily low at 0.7889 at 7:35 GMT.
Fundamentals
Euro zone
French industrial output
Annualized industrial production in France probably contracted 0.1% in October, after a 0.3% drop during the preceding month. If so, this would be the ninth consecutive month of contraction, but yet the smallest drop since February. The index reflects the change in overall inflation-adjusted value of output in sectors such as manufacturing, mining, utilities, with the exception of recycling.
In monthly terms, industrial production probably grew 0.3% in October, following a 0.1% drop in September.
Frances manufacturing production, which accounts for almost 80% of total industrial production, expanded 0.2% in September on annual and 0.6% on a monthly basis. This index is considered as causing a greater influence on the currency market. In case output shrank more than projected, this would have a bearish effect on the euro. The National Institute for Statistics and Economic Studies is to publish the official industrial data at 7:45 GMT.
United Kingdom
Balance of trade
The deficit on United Kingdom’s goods trade balance probably narrowed to GBP 9.500 billion in October, according to market expectations, from a deficit figure of GBP 9.821 billion during the preceding month.
This indicator is also known as visible trade balance, because it reflects the difference in value between exported and imported physical goods, without the inclusion of exported and imported services. Since UK economy is to a great extent dependent on trade, the visible trade balance is considered as a key factor, providing clues over the resilience of nation’s economic growth.
The gap on the nations total trade balance expanded to GBP 2.84 billion in September from a revised GBP 1.77 billion deficit, posted in August. Total exports of goods and services amounted to GBP 40.89 billion in September and total imports – GBP 43.73 billion.
In case UK trade decifit shrank more than anticipated, this would provide support to the pound. The Office for National Statistics (ONS) will publish the official trade data at 9:30 GMT.
Pivot Points
According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 0.7896. In case EUR/GBP manages to breach the first resistance level at 0.7933, it will probably continue up to test 0.7969. In case the second key resistance is broken, the pair will probably attempt to advance to 0.8006.
If EUR/GBP manages to breach the first key support at 0.7860, it will probably continue to slide and test 0.7823. With this second key support broken, the movement to the downside will probably continue to 0.7787.
The mid-Pivot levels for today are as follows: M1 – 0.7805, M2 – 0.7842, M3 – 0.7878, M4 – 0.7915, M5 – 0.7951, M6 – 0.7988.
In weekly terms, the central pivot point is at 0.7897. The three key resistance levels are as follows: R1 – 0.7963, R2 – 0.8044, R3 – 0.8110. The three key support levels are: S1 – 0.7816, S2 – 0.7750, S3 – 0.7669.
TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover 
