Yesterday’s trade saw EUR/GBP within the range of 0.7089-0.7182. The pair closed at 0.7099, plunging 1.05% on a daily basis and marking a sixth straight daily loss.
At 7:15 GMT today EUR/GBP was down 0.23% for the day to trade at 0.7084. The pair touched a fresh over-seven-year low at 0.7080 at 4:15 GMT.
Fundamentals
Euro area
ECB President Mario Draghi Statement
At 8:00 GMT ECB President Draghi is to take a statement. Moderate-to-high volatility of the euro crosses is usually present during his speeches.
United Kingdom
Industrial, Manufacturing Output
Annualized industrial production in the United Kingdom probably expanded 1.3% in January, following a 0.5% gain during the preceding month. If so, this would be the fastest production growth rate since August 2014, when activity grew 2.2%. In monthly terms, industrial production probably increased 0.2% in January, according to expectations, which would neutralize the 0.2% dip in December. The index measures the change in the total inflation-adjusted value of production in sectors such as manufacturing, mining and energetics.
United Kingdom’s annualized manufacturing production, a short-term indicator which accounts for almost 80% of the nation’s industrial output, probably expanded 2.7% in January. If so, this would be the 18th consecutive month of output growth. In December manufacturing production rose at an annualized pace of 2.4%. In monthly terms, production probably increased a third straight month in January, up 0.2%, according to expectations, following a 0.1% growth in December. As it is a key component of the country’s Gross Domestic Product, in case manufacturing production expanded more than projected, this would have a bullish effect on the sterling. The Office for National Statistics (ONS) will release the official industrial data at 9:30 GMT.
Pivot Points
According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 0.7123. In case EUR/GBP manages to breach the first resistance level at 0.7158, it will probably continue up to test 0.7216. In case the second key resistance is broken, the pair will probably attempt to advance to 0.7251.
If EUR/GBP manages to breach the first key support at 0.7065, it will probably continue to slide and test 0.7030. With this second key support broken, the movement to the downside will probably continue to 0.6972.
The mid-Pivot levels for today are as follows: M1 – 0.7001, M2 – 0.7048, M3 – 0.7094, M4 – 0.7141, M5 – 0.7187, M6 – 0.7234.
In weekly terms, the central pivot point is at 0.7231. The three key resistance levels are as follows: R1 – 0.7284, R2 – 0.7356, R3 – 0.7409. The three key support levels are: S1 – 0.7159, S2 – 0.7106, S3 – 0.7034.
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