GBPUSD TECHS: Support Remains Intact
- RES 4: 1.2977 0.764 proj of the Mar 8 - May 10 - May 25 price swing
- RES 3: 1.2877 High Apr 25 2022
- RES 2: 1.2849 0.618 proj of the Mar 8 - May 10 - May 25 price swing
- RES 1: 1.2760/84 High Jun 27 / High Jul 6
- PRICE: 1.2745 @ 06:08 BST Jul 7
- SUP 1: 1.2591 Low Jun 29
- SUP 2: 1.2578/75 Trendline drawn from the Mar 8 low / 50-day EMA
- SUP 3: 1.2433 Low Jun 8
- SUP 4: 1.2369 Low Jun 5 and a key support
GBPUSD is unchanged having erased the entirety of a mid-session rally yesterday. For bulls, support at 1.2591, the Jun 29 low, remains intact. Resistance to watch is 1.2760, Jun 27 high. This level was pierced yesterday. A stronger break would pave the way for a climb towards key resistance at 1.2849, a Fibonacci projection. On the downside, a break of 1.2591 would resume the recent downtrend and expose the 50-day EMA at 1.2575.
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SCHATZ TECHS: (U3) Pullback Exposes Key Support
- RES 4: 105.975 High May 17
- RES 3: 105.875 High Jun 1 and key short-term resistance
- RES 2: 105.815 High Jun 4
- RES 1: 105.655 High Jun 6
- PRICE: 105.585 @ 05:47 BST Jun 7
- SUP 1: 105.425 Low Jun 6
- SUP 2: 105.360 Low May 29
- SUP 3: 105.330 Low May 26 and key support
- SUP 4: 105.000 Round number support
Schatz futures remain below 105.875, the Jun 1 high and the contract is trading closer to its recent lows. A continuation lower would expose key short-term support at 105.330, the May 26 low. Clearance of this level would strengthen bearish conditions and signal scope for weakness towards the 105.00 handle. On the upside, 105.875 marks the key short-term resistance. A break would be bullish. Initial resistance is 105.655, the Jun 6 high.
GBPUSD TECHS: Bear Threat Remains Present
- RES 4: 1.2680 High May 10 and the bull trigger
- RES 3: 1.2641 High May 11
- RES 2: 1.2592 76.4% retracement of the May 10 - 25 bear cycle
- RES 1: 1.2461/2545 High Jun 5 / High Jun 2 and key resistance
- PRICE: 1.2424 @ 05:58 BST Jun 7
- SUP 1: 1.2369/2308 Low Jun 5 / Low May 25 and the bear trigger
- SUP 2: 1.2275 Low Apr 3
- SUP 3: 1.2242 50.0% retracement of the Mar 8 - May 10 bull run
- SUP 4: 1.2213 Low Mar 27
The pullback in GBPUSD from last week’s high highlights a bearish threat and key S/T resistance has been defined at 1.2545, the Jun 2 high. Note that, despite a brief test above it last week, the 61.8% retracement of the May 10 - 25 downleg at 1.2538 remains intact - an important short-term resistance. A continuation lower would open 1.2308, May 25 low and key support. Clearance of last Friday’s high is required to reinstate the recent bull cycle.
EURUSD TECHS: Trend Needle Points South
- RES 4: 1.1007 High May 10
- RES 3: 1.0905 High May 16
- RES 2: 1.0823 50-day EMA values
- RES 1: 1.0780 20-day EMA
- PRICE: 1.0690 @ 05:49 BST Jun 7
- SUP 1: 1.0667/35 Low Jun 6 / Low May 31 and the bear trigger
- SUP 2: 1.0608 Low Mar 17
- SUP 3: 1.0551 Low Mar 16
- SUP 4: 1.0516 Low Mar 15 and a key support
EURUSD is unchanged and trend conditions remain bearish. Fresh cycle lows last week reinforce the bearish theme and price continues to trade below the 20- and 50-day EMAs. The recent breach of 1.0653, 76.4% of the Mar 15 - Apr 26 rally, opens 1.0551, the Mar 16 low. A firm resistance is seen at 1.0780, the 20-day EMA. A break of this average would ease bearish pressure and signal scope for a stronger correction.
