FED: Beige Book: Labor Market Remains Subdued

• RES 4: 0.8769 High Jul 28 and the bull trigger   
• RES 3: 0.8744 High Aug 7 
• RES 2: 0.8728 76.4% retracement of the Jul 28 - Aug 14 bear leg
• RES 1: 0.8687/8713 High Sep 5 / 2  
• PRICE: 0.8651 @ 19:45 BST Sep 15
• SUP 1: 0.8637/8597 50-day EMA / Low Aug 14 and the bear trigger
• SUP 2: 0.8562 50.0% retracement May 29 - Jul 28 upleg 
• SUP 3: 0.8540 Low Jun 30 
• SUP 4: 0.8514 61.8% retracement May 29 - Jul 28 upleg

The latest pullback in EURGBP appears corrective. Support to watch lies at 0.8597, the Aug 14 low. Clearance of this level would cancel a bull theme and reinstate a recent bearish threat. For bulls, a resumption of gains would open 0.8744, the Aug 7 high. Key resistance and the bull trigger is at 0.8769, the Jul 28 high. Note that moving average studies remain in a bull-mode position. This highlights a dominant uptrend.

• RES 4: 1.3753 High Jul 2  
• RES 3: 1.3681 High Jul 4
• RES 2: 1.3636 76.4% retracement of the Jul 1 - Aug 1 downleg
• RES 1: 1.3620 High Sep 15
• PRICE: 1.3605 @ 19:30 BST Sep 15
• SUP 1: 1.3475/3333 50-day EMA / Low Sep 3
• SUP 2: 1.3315 61.8% retracement of the Aug 1 - 14 bull leg
• SUP 3: 1.3249 76.4% retracement of the Aug 1 - 14 bull leg 
• SUP 4: 1.3142 Low Aug 1 and a key support      

A bullish theme in GBPUSD remains intact and price traded higher Monday. The pair has pierced resistance at 1.3595, the Aug 14 high and a bull trigger. A clear break of it would strengthen bullish conditions and open 1.3636, a Fibonacci projection. Initial support to watch is 1.3475, the 50-day EMA. A clear breach of the EMA would highlight a potential reversal and signal scope for a deeper retracement.

• RES 4: 114-10   High Apr 7 (cont.)
• RES 3: 114-07   1.0% 10-dma envelope
• RES 2: 114-00   Round number resistance 
• RES 1: 113-29   High Sep 5
• PRICE:‌‌ 113-15 @ 19:11 BST Sep 15
• SUP 1: 112-23+ 20-day EMA
• SUP 2: 112-02   50-day EMA
• SUP 3: 111-13+ Low Aug 18 and a key support  
• SUP 4: 110-25   Low Aug 1 

Treasury futures rallied to a fresh cycle high last Thursday, strengthening current bullish conditions. Note that the recent impulsive rally highlights an acceleration of the uptrend. Also, moving average studies are in a bull-mode position, highlighting a dominant uptrend. This suggests scope for an extension through 114-00 next and a test of 114-10, the Apr 7 high (cont). Initial firm support to watch is 112-23+, the 20-day EMA.