EURGBP TECHS: Trend Needle Points South
- RES 4: 0.8525 High Jun 6
- RES 3: 0.8499 High Jul 1 and a key resistance
- RES 2: 0.8478 High Jul 5
- RES 1: 0.8458/61 50-day EMA / High Jul 29
- PRICE: 0.8442 @ 16:14 BST Aug 1
- SUP 1: 0.8393/83 Low Jul 25 / 17 and the bear trigger
- SUP 2: 0.8366 2.236 proj of the Apr 23 - 30 - May 9 price swing
- SUP 3: 0.8333 1.0% 10-dma envelope
- SUP 4: 0.8279 3.00 proj of the Apr 23 - 30 - May 9 price swing
EURGBP is in consolidation mode. Recent gains appear to be corrective in nature and a bearish theme is intact. The move down earlier this month resulted in a print below 0.8397, the Jun 14 low and a bear trigger. A clear break of this price level would confirm a resumption of the medium-term downtrend and open 0.8366, a Fibonacci projection. The next firm resistance is seen at 0.8458, the 50-day EMA.
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EURGBP TECHS: Monitoring Resistance At The 50-Day EMA
- RES 4: 0.8568 High May 20
- RES 3: 0.8550 61.8% retracement of the Apr 23 - Jun 14 bear leg
- RES 2: 0.8546 1.0% 10-dma envelope
- RES 1: 0.8503 50-day EMA
- PRICE: 0.8470 @ 16:19 BST Jul 2
- SUP 1: 0.8431 Low Jun 25
- SUP 2: 0.8397 Low Jun 14 and the bear trigger
- SUP 3: 0.8388 Low Aug 17 2022
- SUP 4: 0.8366 2.236 proj of the Apr 23 - 30 - May 9 price swing
EURGBP has traded above last week’s high of 0.8478 (Jun 24) and the cross is holding on to its latest gains. Recent gains signal scope for a stronger corrective cycle and sights are on resistance at 0.8503, the 50-day EMA. A clear break of this average would undermine the recent bearish theme. Initial firm support to watch lies at 0.8431, the Jun 25 low. A reversal lower and a break of this support would open 0.8397, the Jun 14 low and bear trigger.
PIPELINE: $4.5B Sumitomo Mitsui Bank (SMBC) 5Pt Debt Launched
- Date $MM Issuer (Priced *, Launch #)
- 7/2 $4.5B #Sumitomo Mitsui Bank (SMBC) $750M 5Y +93, $500M 5Y SOFR+117, $900M 7Y +103, $1.35B 10Y +113, $1B 20Y +113
- 7/2 $4B *EIB 7Y SOFR+46
- 7/5 $500M #ANZ Bank WNG 10NC5 +150
GBPUSD TECHS: Bear Threat Remains Present
- RES 4: 1.2947 1.50 proj of the Apr 22 - May 3 - 9 price swing
- RES 3: 1.2908 1.382 proj of the Apr 22 - May 3 - 9 price swing
- RES 2: 1.2894 High Mar 8 and a key resistance
- RES 1: 1.2740/2860 High Jun 19 / 12 And the bull trigger
- PRICE: 1.2676 @ 16:16 BST Jul 2
- SUP 1: 1.2613 Low June 27
- SUP 2: 1.2584 Low May 15
- SUP 3: 1.2514 61.8% retracement of the Apr 22 - Jun 12 bull cycle
- SUP 4: 1.2446 Low May 9 and a key near-term support
A bearish threat in GBPUSD remains present and the pair continues to trade closer to its recent lows. Recent weakness has resulted in a breach of a key support at 1.2669, the 50-day EMA, signalling scope for a deeper correction towards 1.2584 next, the May 15 low. For bulls, a reversal higher and a break of 1.2860, the Jun 12 high, would resume the uptrend. Initial firm resistance to watch is 1.2740, the Jun 19 high.
