EURGBP TECHS: Bear Cycle Intact

• RES 4: 0.8645 High Apr 23 ‘24       
• RES 3: 0.8625 High Aug 8 ‘24  
• RES 2: 0.8604 1.382 proj of the Mar 3 - 11 - 28 price swing
• RES 1: 0.8593 High Aug 14 ‘24
• PRICE: 0.8553 @ 16:29 BST Apr 8 
• SUP 1: 0.8470/0.8397 Low Apr 7 / 20-day EMA 
• SUP 2: 0.8316 Low Mar 28 and a key near-term support
• SUP 3: 0.8299 Low Mar 5   
• SUP 4: 0.8251 Low Mar 4

EURGBP maintains a bullish tone and the cross is holding on to its latest gains. A key resistance at 0.8474, the Jan 20 high, has been cleared. The breach of this hurdle highlights an important technical break and strengthens a bullish condition. Sights are 0.8593 next, the Aug 14 ‘24 high. On the downside, firm support lies at 0.8397, the 20-day EMA. The cross is overbought, a pullback would allow this condition to unwind.      

Swap spreads have gapped to inverted session lows amid heavy swap-tied buying in short end over the last 30 minutes, 2Y through 5Y spds contract 4.5-5.0bp, 10Y swap -4.0 to -56.81 at the moment.

• Stocks popped higher on "*LEAVITT: 10% UNIVERSAL BASELINE TARIFF WILL GO INTO EFFECT" - bbg
  Presumably on the assumption that the higher individual tariff rates for those with trade surpluses with the rest wouldn't go ahead tomorrow.
• But she'd earlier said "*LEAVITT: 'RECIPROCAL TARIFFS' WILL CONTINUE TO GO INTO EFFECT" - bbg
• The former sounds like a misunderstanding with the 10% tariffs already in place as we first posted, but communication is certainly unclear. The 10% minimum rate had already come into effect on Saturday at 0001ET.