EURGBP TECHS: Pullback Considered Corrective
- RES 4: 0.9097 76.4% Retracement of the Sep 26 - Dec 1 bear leg
- RES 3: 0.9047 2.0% 10-dma envelope
- RES 2: 0.8992 61.8% Retracement of the Sep 26 - Dec 1 bear leg
- RES 1: 0.8911/8979 High Feb 7 / 3 and the bull trigger
- PRICE: 0.8846 @ 16:54 GMT Feb 10
- SUP 1: 0.8824 Low Feb 10
- SUP 2: 0.8798 50-day EMA
- SUP 3: 0.8762 Low Jan 30
- SUP 4: 0.8722 Low Jan 19 and a reversal trigger
EURGBP trend conditions remain bullish despite this week’s retracement. On Feb 2, the cross cleared 0.8897, the Jan 13 high. The break confirmed a resumption of the uptrend that started early December and sights are on 0.8992, a Fibonacci retracement. Moving average studies remain in a bull-mode position, highlighting an uptrend. First support to watch lies at 0.8798, the 50-day EMA.
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EURGBP TECHS: Bullish Outlook
- RES 4: 0.8992 61.8% Retracement of the Sep 26 - Dec 1 bear leg
- RES 3: 0.8980 High Sep 29
- RES 2: 0.8907 50.0% retracement of the Sep 26 - Dec 1 bear leg
- RES 1: 0.8882 High Jan 11
- PRICE: 0.8863 @ 16:49 GMT Jan 11
- SUP 1: 0.8769 Low Jan 9
- SUP 2: 0.8735 50-day EMA
- SUP 3: 0.8646 High Dec 8
- SUP 4: 0.8593 Low Dec 15
EURGBP is breaking higher and traded through recent highs ahead of the Wednesday close. The outlook is bullish and last month's break of 0.8829, the Nov 9 high, reinforced this positive theme. The move higher opens 0.8907 next, a Fibonacci retracement point. Note too that moving average studies highlight a bullish backdrop, reinforcing the current trend direction. Initial firm support is seen at 0.8735, the 50-day EMA. A clear break of this average would be bearish.
US: FED Reverse Repo Operation
NY Fed reverse repo usage rebounds to $2,199.170B w/ 99 counterparties vs. prior session's $2.192.942B. Compares to Friday, Dec 30 record/year-end high of $2,553.716B (prior record high was $2,425.910B on Friday, September 30.
NY Federal Reserve/MNI
US TSY OPTIONS: Update, Late 5Y, 10Y Calls
- Over 14,800 TYG3 114.75 calls, 33 ref 114-09.5
- Over 24,000 FVG3 109.5 calls, 22 ref 109-05.75
