GBPUSD TECHS: MA Studies Highlight A Dominant Downtrend

Al-Monitor reporting that the US and Israel have come to a 'quiet understanding' that Israel will refrain from striking Iran's oil industry and nuclear facilities in return for Washington accelerating arms shipments. However, the agreement is not formalised and Israeli Prime Minister Benjamin Netayanhu may opt for a more punitive strik due to pressure from the far right of his base.

• The report notes: "The package also includes increased US attacks on Houthi weapons depots and other strategic targets in Yemen — a promise that appears to have been kept with the Oct. 16 US strike on Houthi weapons depots in Yemen."
• The report adds that, "both Israeli and US officials consider Iran likely to respond to Israel’s expected attack, which will reportedly target military and other sites," and in response, the Pentagon may be considering the deployment of a second THAAD missile defence system to Israel to enhance anti-missile defences.
• A senior Israeli security source said: "The role of the Americans in the next round — in which it will be Israel's turn to attack Iran — will be critical. They will have to make it clear to Iran in a persuasive and creative way, to break the cycle of reactions so that an all-out war does not break out."
• The report notes that US Secretary of State Antony Blinken has been tasked with convincing Israeli officials, during his current trip, that the killing of the leaders of Hamas and Hezbollah should clear the path for multipronged ceasefire talks.  

• RES 4: 0.8494 High Aug 26
• RES 3: 0.8464 High Sep 11 and a key resistance  
• RES 2: 0.8453 High Sep 18
• RES 1: 0.8359/8434 20-day EMA / High Oct 3 and reversal trigger  
• PRICE: 0.8331 @ 16:33 BST Oct 22
• SUP 1: 0.8295 Low Oct 18
• SUP 2: 0.8276 3.382 projection of the Aug 8 - 13 - 14 price swing 
• SUP 3: 0.8250 Low Apr 14 ‘22
• SUP 4: 0.8203 Low Mar 7 2022 and a major support   

EURGBP continues to trade above last week’s low. The recovery from  Friday’s intraday low highlights a possible early reversal signal and if correct, a short-term base. However, for now, trend signals remain bearish and a resumption of weakness would open 0.8276, a Fibonacci projection. Initial resistance to watch is at 0.8359, the 20-day EMA. Key trend resistance is unchanged at 0.8434, the Oct 3 high.