EURGBP TECHS: Impulsive Bear Wave Extends

• RES 4: 0.8665 61.8% retracement of the Nov 20 - Feb 14 bear cycle
• RES 3: 0.8652 1.0% 10-dma envelope
• RES 2: 0.8645 High Apr 23 and the bull trigger
• RES 1: 0.8618/21 76.4% of the Apr 23 - 30 sell-off / May 9 high
• PRICE: 0.8598 @ 15:58 BST May 14
• SUP 1: 0.8567/31 50-day EMA / Low Apr 30 and the bear trigger
• SUP 2: 0.8521/8504 Low Apr 17 / Low Mar 8
• SUP 3: 0.8498/93 Low Feb 14 / Low Aug 23 2023 and key support
• SUP 4: 0.8454 76.4% of the Mar 7 - Sep 26 ‘23 bull phase

EURGBP traded higher again last week to undermine the recent bearish theme. This strengthens a developing short-term bullish condition. A continuation higher would open 0.8645, the Apr 23 high and a key short-term resistance. Clearance of this hurdle would highlight an important technical break. Initial support to watch is 0.8567, the 50-day EMA.

MNI London: USTR Katherine Tai, speaking at the White House on new tariffs on USD$18 billion of Chinese imports unveiled by President Biden today, says "it is clear that the previous administration's trade deal with [China] failed to increase American exports or boost manufacturing. In fact China's exports in some critical sectors like EVs and batteries actually increased."

• Tai says she expects to release a public notice next week which conveys, "the specific tariff lines, tariff rates, and timing for the proposed increases, along with the details of the machinery exclusions process."
• Tai adds: "We do not seek to constrain China's economic development but we will insist on fair competition and defend working from the PRC's unfair practices."
• Tai echo comments made by Biden a short time ago staking out a clear distinction between the Biden administration's "strategic" policy on China with Trump's less targeted approach which would also hit non-critical sectors and partners.
• When asked if tariffs could increase prices for US consumers, Tai says: "I think that link between tariffs and prices has been largely debunked. What I would say... [we are focusing] on making supply chains more resilient [so] we can insulate the America. economy from [price spikes like COVID-19 and Ukraine war]."
• Biden said earlier today: "My predecessor promised to increase American exports. He failed. He signed a trade deal with China and they were supposed to buy $200 billion more of American goods, instead China's imports from America barely budged."