EURGBP TECHS: Bear Flag
- RES 4: 0.8623 High Aug 22
- RES 3: 0.8494 High Aug 26
- RES 2: 0.8469 50-day EMA
- RES 1: 0.8464 High Sep 12
- PRICE: 0.8445 @ 19:33 BST Sep 13
- SUP 1: 0.8400 Low Aug 30 and the bear trigger
- SUP 2: 0.8383 Low Jul 17 and a key support
- SUP 3: 0.8340 Low Aug 2 ‘22
- SUP 4: 0.8311 3.00 projection of the Aug 8 - 13 - 14 price swing
A bearish theme in EURGBP remains intact and the cross continues to trade closer to its most recent lows. The latest move higher is a shallow correction and still appears to be a flag formation - a bearish continuation pattern that reinforces current conditions. A break lower would resume the downtrend and open 0.8383, the Jul 17 low and the next key support. Resistance to watch is 0.8469, the 50-day EMA.
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EURGBP TECHS: Approaching Support
- RES 4: 0.8715 High Dec 28
- RES 3: 0.8677 76.4% retracement of the Nov 20 ‘23 - Jul 17 bear leg
- RES 2: 0.8645 High Apr 23 and a key resistance
- RES 1: 0.8591/8625 High Aug 14 / 8 and the bull trigger
- PRICE: 0.8525 @ 16:08 BST Aug 16
- SUP 1: 0.8516 20-day EMA
- SUP 2: 0.8494 50-day EMA
- SUP 3: 0.8454 Low Aug 2
- SUP 4: 0.8418 Low Aug 1
EURGBP traded lower again Friday, marking an extension on the current corrective cycle. A retracement is allowing an overbought condition to unwind. First support to watch is 0.8516, the 20-day EMA - a level pierced on Friday. A firmer support lies at the 50-day EMA, at 0.8494. For bulls, recent impulsive gains highlight potential for 0.8645, the Apr 23 high and a key resistance. Note that moving average studies are in bull-mode set-up, highlighting an uptrend.
US TSY OPTIONS: BLOCK: 10Y Calendar Risk Reversal
- -10,000 TYV4 114 call/TYX4 111 put, call over risk for 24 net cr vs. 113-03.5/0.40%, posted at 1319:42ET
SECURITY: US Sec State Blinken To Travel To Israel On Aug 17
US Secretary of State Antony Blinken will travel to Israel on August 17 to, "continue diplomatic efforts to conclude a deal for a ceasefire and the release of hostages in Gaza," according to a statement from the US State Department.
- The trip, which was initially scheduled for earlier this week, comes amid optimism that a ceasefire deal for Gaza could be closer than at any point in recent months, following two-days of talks in Doha, Qatar.
- US President Joe Biden told reporters in the Oval Office a short time ago: "We're much, much closer than we were three days ago. I don't want to jinx anything" and "we're not there yet," but "we're close."
- Ceasefire talks come amid a flurry of diplomacy to bridge remaining gaps between Israel and Hamas, and deter Iran from a potential attack on Israel that has loomed over the talks.
- Barak Ravid at Axios reports: "Qatari Prime Minister Mohammed Bin Abdul Rahman al-Thani spoke on the phone with acting Iranian foreign minister and briefed him on the Gaza deal talks. This was the second phone call between them in the last two days. The Qatari foreign ministry said al-Thani stressed to his Iranian counterpart the need to de-escalate the situation in the region."
- Middle East Eye reports, corroborating an earlier report from AFP, that Hamas sources said: “the Israeli delegation’s primary efforts were to add Netanyahu’s conditions to be part of Biden’s proposal.” The sources added that “Hamas categorically rejects Netanyahu’s conditions”.
