EURGBP TECHS: Bear Cycle Remains Intact

• RES 4: 0.8840 High Nov 20   
• RES 3: 0.8818 High Nov 26 
• RES 2: 0.8802 High Dec 2 and a key near-term resistance 
• RES 1: 0.8772 20-day EMA
• PRICE: 0.8728 @ 16:39 GMT Dec 8
• SUP 1: 0.8722 Low Dec 4
• SUP 2: 0.8706 76.4% retracement of the Oct 8 - Nov 14 bull leg
• SUP 3: 0.8670 Low Oct 21   
• SUP 4: 0.8656 Low Oct 8 and a key support  

The trend set-up in EURGBP is bullish and the current bear cycle appears corrective - for now. Note that the cross has breached the 50-day EMA, currently at 0.8753. The break highlights a stronger reversal and a bear threat plus scope for a deeper retracement, towards 0.8706, a Fibonacci retracement. Initial resistance to watch is 0.8802, the Dec 2 high. A breach of this hurdle would be a bullish development.        

• RES 4: 1.3471 High Oct 17   
• RES 3: 1.3452 50.0% retracement of the Sep 17 - Nov 4 bear leg 
• RES 2: 1.3416 High Oct 21
• RES 1: 1.3385 High Dec 04
• PRICE: 1.3314 @ 16:31 GMT Dec 8
• SUP 1: 1.3264 50-day EMA   
• SUP 2: 1.3226 20-day EMA
• SUP 3: 1.3180/25 Low Dec 2 / Low Nov 26 
• SUP 4: 1.3038/10 Low Nov 20 / Low Nov 4 & 5 and the bear trigger       

A bull theme in GBPUSD remains intact and the pair is holding on to its recent gains. The breach of  resistance around the 50-day EMA, at 1.3264, undermines a recent bearish theme and highlights a stronger reversal. This paves the way for an extension towards 1.3452, a Fibonacci retracement point. Initial firm support is seen at 1.3226, the 20-day EMA. A move below this average would be a bearish development.  

RRP usage inches up to $1.703B with 6 counterparties this afternoon from $1.485B Friday. Compares to Tuesday November 18: $0.905B - lowest level since mid-March 2021; this years highest excess liquidity measure: $460.731B on June 30.