EURGBP TECHS: Gains Considered Corrective
- RES 4: 0.8512 High Mar 31
- RES 3: 0.8477 2.0% 10-dma envelope
- RES 2: 0.8405/8435 High Apr 11 / High Apr 4
- RES 1: 0.8336/56 High Apr 20 / 50-day EMA
- PRICE: 0.8303 @ 16:12 BST Apr 20
- SUP 1: 0.8250 Low Apr 14 and key near-term support
- SUP 2: 0.8203 Low Mar 7 and the bear trigger
- SUP 3: 0.8144 2.0% 10-dma envelope
- SUP 4: 0.8117 High Apr 7 2016
A bearish cycle in EURGBP remains intact and this week’s recovery is likely a correction. The sharp sell-off between Apr 11 - 14, strengthened the bearish condition. The cross traded below 0.8296, Mar 23 low, as well as 0.8276, 76.4% of the Mar 7 - 31 rally. This opens 0.8203, the Mar 7 low and the next bear trigger. Firm resistance is seen at 0.8405, Apr 11 high. A break would represent a short-term bullish development. Initial resistance is at 0.8336.
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BONDS: Sell Off Resumes
Previous, tentative signs of buying interest in core FI have been overpowered, with the likes of T-Notes & Aussie 10-Year futures registering fresh session lows in recent dealing. Core fixed income sellers remain well and truly in the driving seat during Asia-Pac hours as the region reacts to Monday’s hawkish rhetoric from Fed Chair Powell.
BONDS: Core FI Finding a Bit Of A Base, At Least For Now
Core fixed income markets have started to find a little bit of a base over the last hour or so, although headline flow remains light, with a clear downward bias when it comes to the broader direction of travel during Asia-Pac dealing, as the region reacts to Monday’s Fedspeak from Chair Powell & the resultant fresh leg of cheapening.
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