GBPUSD TECHS: Trend Structure Remains Bullish
- RES 4: 1.2894 High Mar 8 and a key resistance
- RES 3: 1.2823 High Mar 14
- RES 2: 1.2803 High Mar 21
- RES 1: 1.2761 High May 22
- PRICE: 1.2748 @ 16:22 BST May 24
- SUP 1: 1.2643/1.2596 Low May 16 / 50-day EMA
- SUP 2: 1.2510 Low May 14
- SUP 3: 1.2446 Low May 9 and a key near-term support
- SUP 4: 1.2423 Low Apr 24
Friday’s price action has affirmed the underlying bullish trend condition and short-term pullbacks are considered corrective. The recent breach of 1.2634, the May 3 high, confirmed a resumption of the current bull cycle and this opened 1.2754, 76.4% of the Mar 8 - Apr 22 bear leg. 1.2754 was pierced Wednesday, a clear break would expose 1.2803, the Mar 21 high. Initial firm support to watch lies at 1.2596, the 50-day EMA.
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GBPUSD TECHS: Corrective Bounce
- RES 4: 1.2803 High Mar 21
- RES 3: 1.2709 High Apr 09
- RES 2: 1.2517/1.2591 20-and 50-day EMA values
- RES 1: 1.2468 High Apr 19
- PRICE: 1.2453 @ 16:28 BST Apr 24
- SUP 1: 1.2300 Low Apr 22
- SUP 2: 1.2266 Low Nov 14 ‘23
- SUP 3: 1.2239 76.4% retracement of the Oct 4 - Mar 8 bull leg
- SUP 4: 1.2187 Low Nov 10
The trend condition in GBPUSD remains bearish and short-term gains are considered corrective. A recovery is allowing an oversold trend condition to unwind. Moving average studies are in a bear-mode set-up and the recent break lower, maintains the downward price sequence of lower lows and lower highs. Sights are on 1.2266, the Nov 14 2023 low. Initial firm resistance is seen at 1.2517, the 20-day EMA.
SECURITY: Israeli War Cabinet To Meet Tomorrow, Discuss New Hostage Plan, Rafah
Israeli media reporting that the Israeli War Cabinet will meet tomorrow to discuss a new strategy for securing the release of hostages and an upcoming IDF operation in the Gazan city of Rafah.
- According to Barak Ravid at Axios, the War Cabinet, "is expected to discuss tomorrow a new initiative to promote a deal for the release of the hostages held by Hamas in the Gaza Strip... a follow up to a preliminary discussion which took place on Sunday.
- A senior Israeli official cautioned: "These are internal Israeli discussions. This does not mean that there is an offer on the table from Hamas or the mediators."
- Amichai Stein at Kann reports: "In recent days, new proposals have been drafted in Israel to try and promote a hostage deal... Tomorrow the war cabinet and the security cabinet are expected to discuss the issue, in addition to the discussion of the Rafah issue."
- Reuters reports that Israel appears "poised" to authorise a Rafah invasion: "An Israeli government source said Netanyahu's war cabinet planned to meet in the coming two weeks to authorise civilian evacuations, expected to take around a month.... The defence official, who requested anonymity, told Reuters that the military could go into action immediately but was awaiting a green light from Netanyahu."
US: FED Reverse Repo Operation
- RRP usage climbs to $441.215B vs. $435.880B Tuesday. Compares to $327.066B on Monday, April 15 -- the lowest level since mid-May 2021.
- Meanwhile, the latest number of counterparties rebounds to 82 vs. 71 prior.
NY Federal Reserve/MNI
