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Yesterday’s trade saw GBP/NOK within the range of 10.3730-10.4480. The pair closed at 10.4147, losing 0.05% on a daily basis.

At 8:07 GMT today GBP/NOK was up 0.14% for the day to trade at 10.4275. The pair touched a daily high at 10.4425 at 6:20 GMT.

Fundamental view

United Kingdom

BoE Lending Conditions Report

At 8:30 GMT Bank of England (BoE) will publish its report on lending conditions in the United Kingdom during the three months through September. It is based on a survey of banking and non-banking institutions, which provide information regarding secured and not secured loans to households, small and medium enterprises and corporations outside financial sector. Respondents in the survey are asked about their opinion on conditions during both past three and the upcoming three months.

Industrial, Manufacturing production

Annualized industrial output in the United Kingdom probably expanded 2.6% in August, following a 1.7% gain during the preceding month. If so, this would be the strongest increase since April. In monthly terms, industrial production probably remained flat in August. The index reflects 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 nation’s industrial output, probably expanded 3.4% in August. If so, this would be the fastest annual pace since May. In July manufacturing output rose at an annualized pace of 2.2%. In monthly terms, production probably increased 0.1% during August. As it is a key component of 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 8:30 GMT.

Norway

Manufacturing output in Norway, an indicator measuring the change in the total inflation-adjusted value of production by manufacturing companies, probably expanded 0.6% in August compared to July, according to the median estimate by experts, following a 0.1% drop in the previous month. Annualized manufacturing output increased 2.9% in July and 3.1% in June. Manufacturing production accounts for almost 80% of total industrial production, as the latter is a dominant segment of country’s economy. In case output expanded more than projected, this would have a bullish effect on the krone. Statistics Norway will release the official figures at 8:00 GMT.

Technical view

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 10.4119. In case GBP/NOK manages to breach the first resistance level at 10.4508, it will probably continue up to test 10.4869. In case the second key resistance is broken, the pair will probably attempt to advance to 10.5258.

If GBP/NOK manages to breach the first key support at 10.3758, it will probably continue to slide and test 10.3369. With this second key support broken, the movement to the downside will probably continue to 10.3008.

The mid-Pivot levels for today are as follows: M1 – 10.3189, M2 – 10.3564, M3 – 10.3939, M4 – 10.4314, M5 – 10.4689, M6 – 10.5064.

In weekly terms, the central pivot point is at 10.4345. The three key resistance levels are as follows: R1 – 10.4849, R2 – 10.5538, R3 – 10.6042. The three key support levels are: S1 – 10.3656, S2 – 10.3152, S3 – 10.2463.

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