JGBS: Cheaper, Trade Deal HLs In Focus, Market Closed On Mon & Tues

• China on Tuesday unveiled a plan to strengthen financial services for technology-based enterprises, as part of the country's efforts to promote integrated advancements in technological and industrial innovation.      The plan, jointly issued by the National Financial Regulatory Administration, the Ministry of Science and Technology and the National Development and Reform Commission, outlines measures to boost financial services including service mechanism establishment, product supply, specialized services and risk control capabilities. (source: Xinhua)
• China will further strengthen the role of domestic consumption in driving economic growth this year to offset the impact of weaker external demand caused by higher tariffs imposed by the Trump administration, according to Chinese think tank experts.  One key policy initiative for the year is allowing local governments to collect a portion of the consumption tax to ease their financial difficulties and incentivize them to promote spending (source: Yicai)
• Equity markets were all positive with marginal gains across the major bourses.  The Hang Seng barely held onto gains, rising +0.06%, CSI 300 +0.15%, Shanghai +0.25% and Shenzhen +0.40%.
• CNY:  Yuan Reference Rate at 7.1793 Per USD; Estimate 7.2678
• Bonds:  A subdued day in the bond market with the CGB 10YR marginally lower in yield at 1.80% (-1bps)

• RES 4: 1.3175 High Oct 4 2024  
• RES 3: 1.3119 76.4% retracement of the Sep 26 ‘24 - Jan 13 bear leg
• RES 2: 1.3048 High Nov 6 ‘24
• RES 1: 1.3015 High Mar 20 and the bull trigger  
• PRICE: 1.2914 @ 06:19 BST Apr 2
• SUP 1: 1.2891/71 20-day EMA / Low Mar 27      
• SUP 2: 1.2766 50-day EMA and a short-term pivot support
• SUP 3: 1.2679 Low Mar 4   
• SUP 4: 1.2559 Low Feb 28      

GBPUSD is in consolidation mode and trading in a range. Importantly for bulls, the pair continues to trade closer to its recent highs. MA studies are in a bull-mode position highlighting a dominant uptrend. A breach of 1.3015, the Mar 20 high and bull trigger, would resume the uptrend and open 1.3048, the Nov 6 2024 high. Support at the 20-day EMA, at 1.2891, is intact. A clear break of the 20-day EMA is required to signal scope for a deeper correction.