EURGBP TECHS: Trading Closer To Recent Highs
- 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: 0.8877 High Dec 30
- PRICE: 0.8803 @ 16:07 GMT Jan 6
- SUP 1: 0.8784/75 Low Dec 23 & Jan 3 / 20-day EMA
- SUP 2: 0.8724 50-day EMA
- SUP 3: 0.8646 High Dec 8
- SUP 4: 0.8593 Low Dec 15
EURGBP is holding on to the bulk of its recent gains. The outlook remains bullish and last month's break of 0.8829, the Nov 9 high, reinforced this theme. This paves the way for a move towards 0.8907, a Fibonacci retracement point. Moving average studies have crossed to highlight a bullish backdrop, reinforcing the current trend direction. On the downside, initial firm support is seen at 0.8724, the 50-day EMA. A break would be bearish.
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EURGBP TECHS: Bear Threat Still Present
- RES 4: 0.8867 High Oct 12
- RES 3: 0.8829 High Nov 09 and the bull trigger
- RES 2: 0.8778 High Nov 16
- RES 1: 0.8667 50-day EMA
- PRICE: 0.8615 @ 15:35 GMT Dec 7
- SUP 1: 0.8547 Low Dec 1 and the bear trigger
- SUP 2: 0.8522 Low Aug 30
- SUP 3: 0.8471 Low Aug 28
- SUP 4: 0.8449 1.236 proj of the Oct 12 - 31 - Nov 9 price swing
EURGBP continues to trade above last week’s low. A bearish threat remains present and attention is on the Oct 31 low of 0.8560 that was pierced on Dec 1. A clear break would strengthen a bearish theme and open 0.8522, the Aug 30 low. Moving average studies have crossed, highlighting a potential bear mode set-up. A clear break of 0.8560 would reinforce a bearish theme. Key resistance is at 0.8829.
US TSY OPTIONS: 5Y Ratio Call Spd
- 1,600 FVF 109.5/110.5 2x3 call spds, 3 net ref 109-10.75
GBPUSD TECHS: Corrective Pullback
- RES 4: 1.2667 High May 27
- RES 3: 1.2599 High Jun 7
- RES 2: 1.2506 1.382 proj of the Sep 26 - Oct 5 - Oct 12 price swing
- RES 1: 1.2345/2406 High Dec 5 / High Jun 16
- PRICE: 1.2209 @ 15:34 GMT Dec 7
- SUP 1: 1.2054 Low Dec 1
- SUP 2: 1935 20-day EMA
- SUP 3: 1.1901 Low Nov 30 and a key short-term support
- SUP 4: 1.1741 50-day EMA
Trend conditions in GBPUSD remain bullish and this week’s move lower appears to be a correction. Last week’s extension reinforced the uptrend - the pair cleared the 200-dma and this maintains a bullish price sequence of higher highs and higher lows. Note that moving averages studies are in a bull-mode position. A resumption of gains would open 1.2406, the Jun 16 high. Key short-term support has been defined at 1.1901, the Nov 30 low.
