EUROZONE ISSUANCE: EGB Supply Daily

• RES 4: 0.8769 High Jul 28 and the bull trigger   
• RES 3: 0.8744 High Aug 7 
• RES 2: 0.8728 76.4% retracement of the Jul 28 - Aug 14 bear leg
• RES 1: 0.8713 High Sep 2  
• PRICE: 0.8702 @ 06:48 BST Sep 3
• SUP 1: 0.8628/8597 50-day EMA / Low Aug 14 and the bear trigger
• SUP 2: 0.8562 50.0% retracement May 29 - Jul 28 upleg 
• SUP 3: 0.8540 Low Jun 30 
• SUP 4: 0.8514 61.8% retracement May 29 - Jul 28 upleg

EURGBP traded higher Tuesday, resulting in a breach of resistance at 0.8674, the Aug 25 and 29 high. The break signals a stronger reversal and suggests scope for climb towards 0.8744, the Aug 7 high. Key resistance and the bull trigger is at 0.8769, the Jul 28 high. Key support to watch lies at  support at 0.8597, the Aug 14 low. Clearance of this level is required to reinstate the recent bearish threat.

Greece and the EU are still due to sell bills this week, while Germany, the Netherlands, France, Spain, Belgium and the ESM have already come to the market. We estimate issuance in first round operations at E26.9bln for the week, up from E18.8bln last week.

• This morning, Greece will look to sell E500mln of the new 52-week Sep 4, 2026 GTB.
• Also today, the EU will conclude bill issuance for the week with up to E1.0bln of the 3-month Dec 5, 2025 EU-bill on offer alongside up to E1.0bln of the 6-month Mar 6, 2026 EU-bill and up to E1.0bln of the new 12-month Sep 4, 2026 EU-bill.

• RES 4: 107.245 High Jul 24  
• RES 3: 107.185 High Aug 1
• RES 2: 107.139 50-day EMA and a key area of resistance
• RES 1: 107.063/125 20-day EMA / High Aug 27 
• PRICE: 106.975 @ 06:14 BST Sep 3
• SUP 1: 106.960 Low Sep 2
• SUP 2: 107.928 1.764 proj of the Jul 7 - 11 - 22 price swing 
• SUP 3: 106.900 Round number support
• SUP 4: 106.870 2.000 proj of the Jul 7 - 11 - 22 price swing

The trend outlook in Schatz futures remains bearish and recent short-term gains have been corrective. The bear trigger at 106.970, the Aug 25 low, has been breached, confirming a resumption of the downtrend. This paves the way for an extension towards 106.928, a Fibonacci projection. Moving average studies remain in a bear-mode position, highlighting a downtrend. Key short-term resistance is at 107.125, the Aug 27 high.