SCHATZ TECHS: (U5) Support Remains Intact For Now

• RES 4: 1.3913 High Sep 14 2021
• RES 3: 1.3681 1.500 proj of the Feb 28 - Apr 3 - 7 price swing
• RES 2: 1.3605 1.382 proj of the Feb 28 - Apr 3 - 7 price swing
• RES 1: 1.3593 High May 26 
• PRICE: 1.3551 @ 06:23 BST May 27
• SUP 1: 1.3444/3351 High Apr 28 and 29 / 20-day EMA   
• SUP 2: 1.3189/40 50-day EMA / Low May 12 and key support
• SUP 3: 1.3041 Low Apr 14  
• SUP 4: 1.2968 Low Apr 11 

The trend needle in GBPUSD continues to point north and the pair traded higher Monday, starting the week on a bullish note. The bull trigger at 1.3444, the Apr 28 / 29 high, has been cleared. The break confirms a resumption of the uptrend and sights are on 1.3605, a Fibonacci retracement. Medium-term trend signals highlight a dominant uptrend - moving average studies remain in a bull-mode position. First support lies at 1.3351, the 20-day EMA.

• Moody's decision to affirm China's A1 ratings on Monday is a positive reflection of the improving prospects for the country's economy, the Chinese Ministry of Finance said.  Since the fourth quarter of last year, the Chinese government has implemented a series of macroeconomic policies, economic indicators have improved, market expectations and confidence have stabilized, and the medium and long-term sustainability of debt has improved, the ministry said. (source China Daily)
• China's industrial firms saw a 3% increase in profits in April, driven by a government trade-in program and demand for manufactured products despite higher US tariffs.
• Improving earnings are crucial to bolstering business confidence, and stronger corporate balance sheets could reduce the urgency of additional stimulus by Beijing to meet its annual growth target.  The government's program to subsidize equipment upgrades and consumer goods has boosted demand for industrial products, with manufacturing leading profit gains among industrial firms, particularly in high-tech sectors like artificial intelligence-enhanced manufacturing.  (source BBG)
• China's major bourses were all lower today with the Hang Seng down -0.18%, CSI 300 -0.55%, Shanghai -0.33% and Shenzhen down -0.65%
• Yuan Reference Rate at 7.1876 Per USD; Estimate 7.1869
• Bonds continue their period in a tight range with the CGB 10YR at 1.69%