GBPUSD TECHS: Monitoring Resistance At The 50-Day EMA

Portugal and the EU are still due to sell bills this week, while Germany, the Netherlands, France and the ESM have already come to the market. We expect issuance to be E19.3bln in first round operations, down from E25.5bln last week.

• This morning, Portugal will look to issue a combined E1.50-1.75bln of the 10-month Jul 17, 2026 BT and the new 12-month Sep 18. 2026 BT.
• Finally today, the EU will look to sell up to E1.0bln of the 3-month Dec 5, 2025 EU-bill, up to E1.0bln of the 6-month Mar 6, 2026 EU-bill and up to E1.0bln of the 12-month Sep 4, 2026 EU-bill.

• RES 4: 0.8769 High Jul 28 and the bull trigger   
• RES 3: 0.8744 High Aug 7 
• RES 2: 0.8728 76.4% retracement of the Jul 28 - Aug 14 bear leg
• RES 1: 0.8713 High Sep 2  
• PRICE: 0.8689 @ 06:31 BST Sep 17
• SUP 1: 0.8640/8597 50-day EMA / Low Aug 14 and the bear trigger
• SUP 2: 0.8562 50.0% retracement May 29 - Jul 28 upleg 
• SUP 3: 0.8540 Low Jun 30 
• SUP 4: 0.8514 61.8% retracement May 29 - Jul 28 upleg

The latest pullback in EURGBP appears corrective and Tuesday’s rally signals the end of the corrective phase. Support to watch lies at 0.8597, the Aug 14 low. Clearance of this level would cancel a bull theme and reinstate a recent bearish threat. For bulls, a stronger resumption of gains would open 0.8744, the Aug 7 high. Key resistance and the bull trigger is at 0.8769, the Jul 28 high. First support is 0.8640, the 50-day EMA.

Market Summary:  All of China's major bourses are up with the Hang Seng leading the charge. The HSI is up +1.41%, the CSI 300 +0.60%, Shanghai +0.40% and Shenzhen up +0.82%.  The Yuan Reference Rate at 7.1013 Per USD; Estimate 7.1027 and China's 10-Yr CGB is at 1.78%.

• China is willing to strengthen cooperation with BRICS member states in emerging sectors such as artificial intelligence, while prioritizing partnerships in areas such as electric vehicles and solar and hydrogen power, the country's top industry regulator said on Tuesday.  (source China Daily)
• China announced wide-ranging measures to stimulate domestic demand by promoting the consumption of services such as sports and entertainment, the latest attempt to help an economy grappling with slower growth.  The plan, issued on Tuesday by the Ministry of Commerce along with several other departments, doesn’t introduce more funding or subsidies for the services sector. But the 19 measures it outlines indicate the government will use its budget to develop the necessary infrastructure and guide banks to lend more to services providers along with consumers.  (source BBG)