BUNDS: Block trade

• RES 4: 120.00 Psychological round number
• RES 3: 118.96 High Dec 7 and a key resistance
• RES 2: 117.93 High Dec 13
• RES 1: 117.38 Intraday high
• PRICE: 116.53 @ 08:02 GMT Jan 18
• SUP 1: 114.46/113.63 Low Jan 16 / 20-day EMA
• SUP 2: 111.59 Low Jan 6
• SUP 3: 110.77 Low Jan 4
• SUP 4: 109.29 Low Jan 3

The current bull cycle in BTP futures remains intact and the contract traded higher Tuesday, breaching last week’s highs. Price has recently cleared the 20-day EMA and last week’s rally resulted in a break of the 114.00 and 116.00 handles. The acceleration higher signals scope for a climb towards 117.93, the Dec 13 high. On the downside, initial key support has been defined at 114.46, the Jan 16 low.

• RES 4: 1.2506 1.382 proj of the Sep 26 - Oct 5 - Oct 12 price swing
• RES 3: 1.2446 High Dec 14 and the bull trigger
• RES 2: 1.2430 High Dec 15
• RES 1: 1.2336 High Jan 17
• PRICE: 1.2314@ 08:12 GMT Jan 18
• SUP 1: 1.2133/2083 20-day EMA / Low Jan 9
• SUP 2: 1.2024/2017 1.0% 10-dma envelope / 50-day EMA
• SUP 3: 1.1842 Low Jan 6 and the bear trigger
• SUP 4: 1.1779 Low Nov 21

GBPUSD is holding on to its recent gains and a bullish condition remains intact. The pair has recently cleared resistance at 1.2242, the Dec 19 high and today, has breached 1.2303, the 76.4% retracement of the Dec 14 - Jan 6 bear leg. The clear breach exposes 1.2446, the Dec 14 high and a key resistance. On the downside, initial firm support is seen at 1.2083, the Jan 9 low. Key support lies at 1.1842, the Jan 6 low.