GBPUSD TECHS: Builds On Recent Gains
- RES 4: 1.2881 76.4% retracement of the Jul 14 - Oct 4 bear leg
- RES 3: 1.2827 High Dec 28 and the bull trigger
- RES 2: 1.2775 High Jan 24
- RES 1: 1.2748 High Mar 06
- PRICE: 1.2742 @ 16:11 GMT Mar 6
- SUP 1: 1.2600 Low Mar 1
- SUP 2: 1.2519 Low Feb 5 and the bear trigger
- SUP 3: 1.2500 Low Dec 13
- SUP 4: 1.2432 50.0% retracement of the Oct 4 - Dec 28 bull phase
GBPUSD traded higher again Wednesday and is building on recent gains. This has exposed resistance at 1.2775, the Jan 24 high, where a break would signal scope for a climb towards the key resistance and bull trigger at 1.2827, the Dec 28 high. For bears, a reversal lower and a breach of 1.2600, the Mar 1 low, is required to once again highlight a bearish threat. This would expose the bear trigger at 1.2519, the Feb 5 low.
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GBPUSD TECHS: Range Breakout
- RES 4: 1.2996 High Jul 27
- RES 3: 1.2881 76.4% retracement of the Jul 14 - Oct 4 bear leg
- RES 2: 1.2827 High Dec 28 and the bull trigger
- RES 1: 1.2697/2775 20-day EMA / High Jan 24
- PRICE: 1.2527 @ 16:55 GMT Feb 5
- SUP 1: 1.2525 38.2% retracement of the Oct 4 - Dec 28 bull phase
- SUP 2: 1.2519 Intraday low
- SUP 3: 1.2500 Low Dec 13
- SUP 4: 1.2432 50.0% retracement of the Oct 4 - Dec 28 bull phase
GBPUSD traded sharply lower Friday and extended the pullback through Monday trade. The pair has breached support at 1.2597, the Jan 17 low and the base of a range that has been in place since mid-January. A clear range breakout would strengthen a bearish condition and pave the way for weakness towards 1.2500, the Dec 13 low. Initial resistance is at 1.2697, the 20-day EMA. Key resistance is unchanged at 1.2827, the Dec 28 high.
US: FED Reverse Repo Operation
- RRP usage rebounds to $552.289B vs. $513.422B on Friday - the lowest level since mid-2021. Compares to recent cycle low of $503.548B on Thursday, February 1.
- Meanwhile, the number of counterparties holds steady at 80 from 74 last Thursday (compares to 65 on January 16, the lowest since July 7, 2021).
NY Federal Reserve/MNI
PIPELINE: $2.55B GM Financial 3Pt, $2B Starbucks 3Pt Launched
- Date $MM Issuer (Priced *, Launch #
- 2/5 $2.55B #GM Financial $1.2B 3Y +115, $350M 3Y SOFR+135, $1B 7Y +165
- 2/5 $2B #Starbucks $1B 3Y +60, $500M 7Y +80, $500M 10Y +90
- 2/5 $1.5B #Morgan Stanley 15NC10 +180
- 2/5 $1B #Deutsche Bank 4NC3 +145
- 2/5 $500M #Cencora WNG 10Y +98
- 2/5 $Benchmark Paraguay 7Y 8%a, 12Y 6.25%a
- 2/5 $Benchmark ERAC Finance 5Y +90, +10Y +105
- 2/5 $Benchmark Becton Dickinson 5Y +105a, 10Y +120a
- 2/5 $Benchmark Cigna +5Y +90, +7Y +100, 10Y +110, 30Y +125
- 2/5 $Benchmark Texas Instruments 3Y+35, 5Y+50, 10Y+70, 30Y+85, 39Y+92
- 2/5 $Benchmark Couche-Tard 10Y, 30Y investor calls
- 2/5 $1.5B Ardonagh $500M 7NC3, $1B 8NC3 investor calls
- 2/5 $Benchmark Bahrain 7Y Sukuk, 12Y Bond investor calls
- Expected Tuesday:
- 2/6 $Benchmark EIB 10Y SOFR+52a
- 2/6 $Benchmark KDB 3Y SOFR+69a, 5Y SOFR+80a
- 2/6 $Benchmark Export Development Canada 5Y SOFR+43a
