Global macro overview for 08/11/2016:

German factory orders data were released yesterday and according to Destatic agency they dropped unexpectedly in September amid weak domestic demand and sluggish overseas demand. Market participants expected at least a slight increase of 0.2% for this month after 0.9% good increase a month ago, but the data released were worse than expectations. The survey revealed that orders for German-made products fell 0.6% in the reported month, the biggest drop since April. However, on a yearly basis, the current overall growth of factory orders remained positive in the Q3 at the level of 2.6%. In conclusion, the analysts remained cautious, pointing out, that the sector remained weak since 2013-2014 and the German economy is expected to lose steam in the Q3 2016, after expanding 0.7% and 0.4% in the Q1 and Q2, respectively.

Let's now take a look at the EUR/GBP technical picture in the daily time frame. There is a visible bearish divergence between the price and the momentum oscillator on the daily chart and this might suggest a further decline towards the nearest technical support at the level of 0.8816. The trend is still up and only a sustained breakout below the level of 0.8340 would change the near-term outlook to bearish.