GBPUSD TECHS: Pullback Considered Corrective
- RES 4: 1.3800 Round number resistance
- RES 3: 1.3757 1.618 proj of the Feb 28 - Apr 3 - 7 price swing
- RES 2: 1.3681 1.500 proj of the Feb 28 - Apr 3 - 7 price swing
- RES 1: 1.3616 High Jun 5
- PRICE: 1.3544 @ 16:29 BST Jun 11
- SUP 1: 1.3466 20-day EMA
- SUP 2: 1.3335/3306 Low May 20 / 50-day EMA
- SUP 3: 1.3140 Low May 12 and key support
- SUP 4: 1.3041 Low Apr 14
Trend signals in GBPUSD remain bullish and the latest pullback appears to be corrective. A fresh cycle high last week, confirmed a resumption of the uptrend and an extension of the price sequence of higher highs and higher lows. This opens 1.3681 next, a Fibonacci projection. Support at 1.3466, the 20-day EMA, has been pierced. A clear break of it would suggest potential for a deeper correction and expose the 50-day EMA, at 1.3306.
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GBPUSD TECHS: Has Cleared The 20-Day EMA
- RES 4: 1.3605 1.236 proj of the Feb 28 - Apr 3 - 7 price swing
- RES 3: 1.3550 High Feb 24 ‘22
- RES 2: 1.3510 1.236 proj of the Feb 28 - Apr 3 - 7 price swing
- RES 1: 1.3402/3444 High May 6 / High Apr 28 / 29 and the bull trigger
- PRICE: 1.3210 @ 16:28 BST May 12
- SUP 1: 1.3140 Low May 12
- SUP 2: 1.3083 50-day EMA
- SUP 3: 1.3041 Low Apr 14
- SUP 4: 1.2968 Low Apr 11
GBPUSD has started this week’s session on a bearish note as the pair extends the correction that started Apr 29. The 20- day EMA has been breached. Furthermore, a minor head and shoulders formation on the daily chart reinforces the likelihood of a corrective pullback near-term. Key support to watch is 1.3083, the 50-day EMA. The bull trigger has been defined at 1.3444, the Apr 28 / 29 high. A break would resume the uptrend.
US INFLATION: MNI US CPI Preview: An Early Look At The Tariff Hit
- We have published and e-mailed to subscribers the MNI US CPI Preview.
- Please find the full report including MNI analysis and a breakdown of detailed analyst forecasts here: https://media.marketnews.com/USCPI_Prev_May2025_7caf3ac611.pdf
OPTIONS: Busy Euribor Trade Includes Continued Call Condor Closeout
Monday's Europe rates/bond options flow included:
- RXN5 133.50c, bought for 14.5 in 4k
- ERM5 97.875/98.00/98.125/98.25 call condor, sold out at 7.25 in 8k (continuing closing out from prior sessions)
- ERU5 98.125/98.1875/98.3125/98.375 condor vs 97.9375/97.8125 put spread, paper sells for 0.25 in 9k (sells the condor)
- ERU5 98.50/98.37/98.25/98.00p condor sold at -1.75 and -2 (receive) in 16.5k
- ERZ5 98.50/98.25ps 1x2 bought the 1 for 1 in 20k
- ERH6 99.12/99.37cs, bought for 1.25 in 10k
