The week starts with such an important report as German industrial production data. After a rebound in September, now we are expecting a decline. On Wednesday, French industrial production and non-farm payroll data will be released. We expect an uptick from French industrial data as compared to the month before. The major event scheduled on Thursday is targeted LTRO. This event turns this week to a key week for the euro zone. The LTRO is aimed for long-term refinancing operations. The nearest resistance exists at 1.2360; support exists at 1.2255 and 1.2240. In case if the prices fall below 1.2240, we can expect 1.2134 and 1.2045 in the medium term. The weekly resistance exists at 1.2362 and weekly supports exists at 1.2250. We recommend selling on every upswing. In case if the pair close below 1.2230 on a monthly closing basis, we can expect another 200-pips downfall. For an intraday view, the prices are closed and trading below 12ema and 34hrsma. The cable has hourly support at 1.5560 and resistance at 1.5605. For an intraday view, until the price is traded and close below 1.5640, use every rise to sell. We recommend fresh selling below 1.5560 levels. After a huge consolidation, finally the pair gave a downside breakout by 200 pips to the south. For an hourly view, the prices are facing resistance at 35DEMA 1.2310, above this 1.2325 and 1.2350 are the resistance levels. The 34hrsma at 1.2385 is acting as strong resistance for an intraday view.
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