EURGBP TECHS: Bull Flag
- RES 4: 0.8781 2.236 pro of the Mar 3 - 11 - 28 price swing
- RES 3: 0.8738 High Apr 11 high and a key resistance
- RES 2: 0.8694 High Apr 14
- RES 1: 0.8670 High Jul 02
- PRICE: 0.8618 @ 16:24 BST Jul 9
- SUP 1: 0.8597 Low Jul 7
- SUP 2: 0.8562/8511 20- and 50-day EMA values
- SUP 3: 0.8459 Low Jun 11
- SUP 4: 0.8407 Low Jun 4
The trend condition in EURGBP remains bullish and the cross is holding on to the bulk of its recent gains. Recent activity appears to be a bull flag formation - a bullish continuation pattern. 0.8648, 76.4% of the Apr 11 - May 29 downleg, has been pierced. A continuation higher and a confirmation of the flag would strengthen bullish conditions and open 0.8738, the Apr 11 high and a key resistance. Support to watch lies at 0.8562, the 20-day EMA.
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EURGBP TECHS: Trend Direction Remains Down
- RES 4: 0.8557 High Apr 28
- RES 3: 0.8541 High May 2
- RES 2: 0.8493 High May 9
- RES 1: 0.8440/59 50-day EMA and key resistance / High May 21
- PRICE: 0.8421 @ 15:56 BST Jun 9
- SUP 1: 0.8356 Low May 29 and the bear trigger
- SUP 2: 0.8327 1.382 proj of the Apr 11 - 16 - 21 price swing
- SUP 3: 0.8316 Low Mar 28 and a key support
- SUP 4: 0.8277 1.618 proj of the Apr 11 - 16 - 21 price swing
EURGBP is unchanged and a bear cycle remains in play. A key short-term resistance to watch is 0.8440, the 50-day EMA. It has been pierced, however, a clear break of it is required to highlight a stronger reversal. This would expose 0.8541. For bears, support to watch lies at 0.8356, the May 29 low. Clearance of this level would resume the downtrend and open 0.8316, the Mar 28 low and a key support.
GBPUSD TECHS: Trend Needle Points North
- RES 4: 1.3800 Round number resistance
- RES 3: 1.3757 1.618 proj of the Feb 28 - Apr 3 - 7 price swing
- RES 2: 1.3681 1.500 proj of the Feb 28 - Apr 3 - 7 price swing
- RES 1: 1.3616 High Jun 5
- PRICE: 1.3546 @ 15:55 BST Jun 9
- SUP 1: 1.3453 20-day EMA
- SUP 2: 1.3335/3288 Low May 20 / 50-day EMA
- SUP 3: 1.3140 Low May 12 and key support
- SUP 4: 1.3041 Low Apr 14
Trend signals in GBPUSD are unchanged and remain bullish. Last week’s fresh cycle high, confirms a resumption of the uptrend and an extension of the price sequence of higher highs and higher lows. This opens 1.3681 next, a Fibonacci projection. Initial support to watch lies at 1.3453, the 20-day EMA. A clear break of this average would suggest potential for a deeper correction and expose the 50-day EMA, at 1.3288.
US: FED Reverse Repo Operation
RRP usage rises to $179.315B this afternoon from $149.284B Friday, total number of counterparties at 37. Usage had fallen to $54.772B on Wednesday, April 16 -- lowest level since April 2021. Conversely, usage had surged to the highest level since December 31, 2024 on Monday, March 31: $399.167B.
