EURGBP TECHS: Bearish Break

RRP usage retreats to $198.277B this afternoon from $217.841B yesterday, total number of counterparties at 36. Usage had fallen to $54.772B on Wednesday, April 16 -- lowest level since April 2021 - compares to yesterday's (July 1) $460.731B highest usage since December 31.

• RES 4: 1.3835 High Oct 20 2021
• RES 3: 1.3800 Round number resistance
• RES 2: 1.3681/3789 High Jul 04 / 01 and the bull trigger
• RES 1: 1.3572 20-day EMA
• PRICE: 1.3391 @ 16:32 BST Jul 15
• SUP 1: 1.3375 Low Jul 14
• SUP 2: 1.3371 Low Jun 23 and a key short-term support
• SUP 3: 1.3335 Low May 20
• SUP 4: 1.3245 Low May 19 

A softer short-term tone in GBPUSD remains in place and this week’s move down marks an extension of the current corrective bear leg. The pair has breached both 20- and 50-day EMAs, exposing trendline support at 1.3430. The trendline - drawn from the Jan 13 low - has been pierced, a clear break of it would strengthen a bearish threat and expose 1.3371 initially, the Jun 23 low. Initial firm resistance to watch is 1.3681, the Jul 4 high.            

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