EURGBP TECHS: Bullish Price Sequence

• 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: 1.3624 High Jun 12
• PRICE: 1.3568 @ 06:25 BST Jun 16
• SUP 1: 1.3456 Low Jun 10
• SUP 2: 1.3337 50-day EMA
• SUP 3: 1.3217 Trendline support drawn from the Jan 13 low 
• SUP 4: 1.3140 Low May 12 and key support

The trend condition in GBPUSD remains bullish and price is trading closer to its recent highs. A rising price sequence of higher highs and higher lows, together with a bull set-up in moving average studies, highlights a dominant uptrend. Sights are on 1.3681 next, a Fibonacci projection. Resistance at 1.3616, the Jun 5 high has been pierced - a bullish development. Support to watch lies at 1.3456, the Jun 10 low. 

• As new and used home prices (ex Shanghai) continue in their deflationary spiral, other data is showing signs of turning downwards after periods of improvement. China's Residential Property Sales and Property Investment YTD turned down again in May.  Residential Property sales YTD YoY fell -2.8% (from -1.9% in April), the worst result this year.  Property Investment YTD YoY declined -10.7% in May, from -10.3% in April and the worst result in over five years.  There has been speculation as to the need for further policy stimulus with bond markets rallying post the data release.  (source MNI)
• The retails sales figures for May confirm the strength of the consumer that supports an improving domestic economy.  Urban retail sales grew strongly, expanding by +6.5% whilst rural increased to +5.4%.  Strong expansion in household electronics which expanded by +53%.  Online retail sales jumped +8.5% YoY  (source MNI)
• or a second consecutive month, China's industrial production grew less than the prior month.  Peaking in March just prior to the implementation of tariffs at +7.7% May's result was lower at +5.8%.  The 3 year average for Industrial Production expansion is +4.5%.  Mining was flat on last month at +5.7%.  Manufacturing was lower at +6.2% (from +6.6%).  Auto manufacturing rose by +11.2%.  (source MNI)
• The Hang Seng was down -0.12% and remains lower over the last week. The CSI 300 followed its lead, lower by -0.06%. The Shanghai Comp struggled into positive territory rising +0.05% and Shenzhen was the best performer rising +0.34% yet too remains lower over the last week.
• Yuan Reference Rate at 7.1789 Per USD; Estimate 7.1849
• The 10YR CGB is marginally lower in yield today at 1.69%