EURGBP TECHS: Holding On To Its Latest Gains

• RES 4: 0.8865 High Nov 14 and a bull trigger   
• RES 3: 0.8840 High Nov 20
• RES 2: 0.8818 High Nov 26
• RES 1: 0.8802 High Dec 2 and a key near-term resistance
• PRICE: 0.8744 @ 15:30 GMT Dec 22
• SUP 1: 0.8728/21 Low Dec 22 / 9
• SUP 2: 0.8706 76.4% retracement of the Oct 8 - Nov 14 bull leg
• SUP 3: 0.8670 Low Oct 21   
• SUP 4: 0.8656 Low Oct 8 and a key support  

The bull cycle in EURGBP that started Dec 9 remains in place and highlights a possible reversal of the Nov 14 - Dec 9 corrective phase. Key short-term support has been defined at 0.8721, the Dec 9 low. A break of this level would signal scope for a deeper retracement,and open 0.8706, a Fibonacci retracement. Initial firm resistance to watch is unchanged at 0.8802, the Dec 2 high. Clearance of this hurdle would be a bullish development.

• RES 4: 1.3527 High Oct 1    
• RES 3: 1.3471 High Oct 17  
• RES 2: 1.3457 High Dec 22
• RES 1: 1.3452 61.8% retracement of the Sep 17 - Nov 4 bear leg
• PRICE: 1.3450 @ 15:27 GMT Dec 22
• SUP 1: 1.3312 Low Dec 17
• SUP 2: 1.3300 50-day EMA
• SUP 3: 1.3180 Low Dec 2 
• SUP 4: 1.3125 Low Nov 26      

The trend condition in GBPUSD remains bullish and for now, short-term pullbacks are considered corrective. A fresh cycle high today reinforces the bull theme. Attention is on 1.3452 (pierced), 61.8% of the Sep 17 - Nov 4 bear leg. A clear breach of this hurdle would strengthen a bull theme and open 1.3527, the Oct 1 high. Initial firm support is 1.3300, the 50-day EMA. Clearance of this average would highlight a possible reversal.

RRP usage slips to $1.523B with 7 counterparties this afternoon vs. Friday's $3.047B. Compares to December 12 low of $0.838B (lowest level since mid-March 2021); this years highest excess liquidity measure: $460.731B on June 30.