EURGBP TECHS: Returns Lower, But Support Out of Reach
- RES 4: 0.8835 High May 3 2023
- RES 3: 0.8800 Round number resistance
- RES 2: 0.8781 2.236 pro of the Mar 3 - 11 - 28 price swing
- RES 1: 0.8735/8769 High Aug 3 / High Jul 27 and the bull trigger
- PRICE: 0.8673 @ 14:40 BST Aug 8
- SUP 1: 0.8611 Low Jul 31
- SUP 2: 0.8597 50-day EMA
- SUP 3: 0.8540 Low Jun 30
- SUP 4: 0.8508 Low Jun 27
EUR/GBP corrected lower Thursday on the BoE rate decision, which sent prices through the weekly low. Despite the intraday weakness, support to watch remains out of reach for now at the 0.8606 50-day EMA. A clear break of it would strengthen a bear threat. More broadly, the trend set-up is bullish. Moving average studies remain in a bull-mode position highlighting a clear uptrend. Key resistance and the bull trigger is at 0.8769, the Jul 27 high.
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EURGBP TECHS: Bull Flag
- RES 4: 0.8781 2.236 pro of the Mar 3 - 11 - 28 price swing
- RES 3: 0.8738 High Apr 11 high and a key resistance
- RES 2: 0.8694 High Apr 14
- RES 1: 0.8670 High Jul 02
- PRICE: 0.8618 @ 16:24 BST Jul 9
- SUP 1: 0.8597 Low Jul 7
- SUP 2: 0.8562/8511 20- and 50-day EMA values
- SUP 3: 0.8459 Low Jun 11
- SUP 4: 0.8407 Low Jun 4
The trend condition in EURGBP remains bullish and the cross is holding on to the bulk of its recent gains. Recent activity appears to be a bull flag formation - a bullish continuation pattern. 0.8648, 76.4% of the Apr 11 - May 29 downleg, has been pierced. A continuation higher and a confirmation of the flag would strengthen bullish conditions and open 0.8738, the Apr 11 high and a key resistance. Support to watch lies at 0.8562, the 20-day EMA.
US: FED Reverse Repo Operation
RRP usage climbs to $227.273B this afternoon from $219.415B yesterday, total number of counterparties at 37. Usage had fallen to $54.772B on Wednesday, April 16 -- lowest level since April 2021 - compares to yesterday's (July 1) $460.731B highest usage since December 31.
US: More Trump Headlines
More Trump headlines from Bloomberg - not particularly market moving, Treasury futures already extending highs in the lead up to the June FOMC minutes releaser at 1400ET:
- "MORE TARIFF LETTERS COMING TODAY .. TARIFF FORUMULA BASED ON 'COMMON SENSE'
- ON TARIFF LEVELS: HAVEN'T HAD TOO MANY COMPLAINTS"
- "RELEASING BRAZIL TARIFF NUMBER TODAY OR TOMORROW MORNING .. BRAZIL HAS NOT BEEN GOOD TO US"
- "WILL LOOK AT UKRAINE REQUEST FOR PATRIOTS"
- "CHINA PAYING A LOT OF TARIFFS TO THE US .. I HAVE A GOOD RELATIONSHIP WITH XI"
