GBPUSD TECHS: Head And Shoulders Reversal

• RES 4: 1.3274 High Oct 3 ‘24  
• RES 3: 1.3207 High Apr 3 and the bull trigger   
• RES 2: 1.3017 61.8% retracement of the Apr 3 - 7 sell-off
• RES 1: 1.2899 38.2% retracement of the Apr 3 - 7 sell-off      
• PRICE: 1.2774 @ 15:36 BST Apr 9
• SUP 1: 1.2709 Low Apr 7
• SUP 2: 1.2654 50.0% retracement of the Jan 13 - Apr 3 bull cycle 
• SUP 3: 1.2652 2.0% 10-dma envelope
• SUP 4: 1.2559 Low Feb 28 

GBPUSD traded sharply lower Monday but is recovering from this week’s low. For now, the recent sell-off appears corrective. Price has traded below the 50-day EMA - a concern for bulls - however, MA studies remain in a bull mode position and this highlights a dominant uptrend. A continued recovery would open 1.2899 and 1.3017, Fibonacci retracement points. A move through Monday's 1.2709 low, would signal scope for a deeper retracement.  

• Heavy two-way trade, Tsys remain weaker after Pres Trump raises the tariff on China to 125% effective immediately, but calls for a 90 day delay on others while lowering reciprocal tariffs on 75 countries to 10%.
• June'25 10Y trades 110-18 last (-29), 10Y yield +.0736 atg 4.3664%. Curves reverse course, flatter: 2s10s -6.216 at 49.897.

Equities surge on the 90-day pause and lower reciprocal tariffs ex-China included in that post from Trump which initially led with a further increase in China tariffs to 125% - full post below. 

• ESM5 jumps now than 200pts, with a high of 5295.25, just shy of yesterday's 5305.25.
• resistance seen at that 5305.25 after which lies 5435.00 (Apr 4 high).

"@realDonaldTrump
Based on the lack of respect that China has shown to the World’s Markets, I am hereby raising the Tariff charged to China by the United States of America to 125%, effective immediately. At some point, hopefully in the near future, China will realize that the days of ripping off the U.S.A., and other Countries, is no longer sustainable or acceptable. Conversely, and based on the fact that more than 75 Countries have called Representatives of the United States, including the Departments of Commerce, Treasury, and the USTR, to negotiate a solution to the subjects being discussed relative to Trade, Trade Barriers, Tariffs, Currency Manipulation, and Non Monetary Tariffs, and that these Countries have not, at my strong suggestion, retaliated in any way, shape, or form against the United States, I have authorized a 90 day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately. Thank you for your attention to this matter!"