EURGBP TECHS: Monitoring Support
- RES 4: 0.8769 High Jul 28
- RES 3: 0.8744 High Aug 7
- RES 2: 0.8682 High Aug 8
- RES 1: 0.8667 High Aug 20
- PRICE: 0.8659 @ 16:39 BST Aug 22
- SUP 1: 0.8597 Low Aug 14
- 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
EURGBP continues to trade above its recent lows. For bulls, a stronger recovery would refocus attention on the bull trigger at 0.8769, the Jul 28 high. On the downside, note that recent weakness resulted in a breach of key support at 0.8611, the Jul 31 low. The cross has also pierced the 50-day EMA, at 0.8619. A clear breach of these supports would instead highlight a stronger reversal. This would open 0.8562, a Fibonacci retracement point.
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EURGBP TECHS: Trend Needle Points North
- RES 4: 0.8800 Round number resistance
- RES 3: 0.8781 2.236 pro of the Mar 3 - 11 - 28 price swing
- RES 2: 0.8738 High Apr 11 high and a key resistance
- RES 1: 0.8698 High Jul 16
- PRICE: 0.8653 @ 16:07 BST Jul 23
- SUP 1: 0.8626 20- day EMA
- SUP 2: 0.8597 Low Jul 7
- SUP 3: 0.8561 50-day EMA
- SUP 4: 0.8508 Low Jun 27
The trend condition in EURGBP remains bullish and the cross continues to trade closer to its recent highs. A bullish price sequence of higher highs and higher lows is intact and note too that moving average studies are in a bull-mode position, highlighting a dominant uptrend. A resumption of gains would open key resistance at 0.8738, the Apr 11 high. Support to watch is 0.8626, the 20-day EMA.
US: FED Reverse Repo Operation
RRP usage slips to $189.632B this afternoon from $196.374B yesterday, total number of counterparties at 30. Usage had fallen to $54.772B on Wednesday, April 16 -- lowest level since April 2021 - compares to July 1: $460.731B highest usage since December 31.
GBPUSD TECHS: False Trendline Break?
- RES 4: 1.3789 High Jul 01 and the bull trigger
- RES 3: 1.3689 76.4% retracement of the Jul 1 - 16 bear leg
- RES 2: 1.3577 50.0% retracement of the Jul 1 - 16 bear leg
- RES 1: 1.3563 High Jul 23
- PRICE: 1.3560 @ 16:05 BST Jul 23
- SUP 1: 1.3365 Low Jul 16 and the short-term bear trigger
- SUP 2: 1.3335 Low May 20
- SUP 3: 1.3245 Low May 19
- SUP 4: 1.3144 38.2% retracement of the Jan 13 - Jul 1 bull cycle
GBPUSD traded higher again Wednesday, extending the recovery from the Jul 16 low. The recent spell of weakness resulted in a break of trendline support drawn from the Jan 13 low. The breach is a bearish development, however, the latest bounce also highlights a possible false break. Note that M/T signals still highlight an uptrend. The next resistance to watch is 1.3577, a Fibonacci retracement. The bear trigger is 1.3365, Jul 16 low. A break would resume a bear theme.
