EURGBP TECHS: Through Bear Trigger
- RES 4: 0.8378 High Feb 6 and a key resistance
- RES 3: 0.8361 50.0% retracement of the Jan 20 - Feb 3 bear leg
- RES 2: 0.8332 50-day EMA
- RES 1: 0.8315 20-day EMA
- PRICE: 0.8248 @ 16:09 GMT Feb 27
- SUP 1: 0.8243 Low Feb 27
- SUP 2: 0.8223 Low Dec 19 and a key support
- SUP 3: 0.8203 Low Mar 7 ‘22 and a lowest point of a multi-year range
- SUP 4: 0.8163 123.6% retracement of the Dec 19 - Jan 20 bull leg
EURGBP traded through the bear trigger on Thursday, with prices showing below the key short-term support at 0.8248, the Feb 3 low. Clearance here strengthens the bearish condition. This opens 0.8223 as the next key level - the Dec 19 low and key support for the cross. To the upside, clearance of 0.8378, the Jan 6 high and a key S/T pivot level, would be a positive development for bulls.
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EURGBP TECHS: Pierces The 20-Day EMA
- RES 4: 0.8545 High Aug 21
- RES 3: 0.8530 76.4% retracement of the Aug 8 - Dec 19 downleg
- RES 2: 0.8494 High Aug 26 ‘24
- RES 1: 0.8474 High Jan 20 and the bull trigger
- PRICE: 0.8384 @ 16:21 GMT Jan 28
- SUP 1: 0.8387/80 20-day EMA / Low Jan 28
- SUP 2: 0.8356 50-day EMA
- SUP 3: 0.8284 Low Jan 8
- SUP 4: 0.8263 Low Dec 31
A bull cycle in EURGBP remains intact and the latest pullback is considered corrective. Moving average studies are in a bull-mode position, highlighting a dominant short-term uptrend. Support levels to watch are; 0.8387, the 20-day EMA (pierced), and 0.8356, the 50-day EMA. A clear breach of this support zone would highlight a stronger reversal. The bull trigger is 0.8474, the Jan 20 high. A move through this level would resume the uptrend.
GBPUSD TECHS: Tests Resistance At The 50-Day EMA
- RES 4: 1.2667 High Dec 19
- RES 3: 1.2610 38.2% retracement of the Sep 26 ‘24 - Jan 13 swing
- RES 2: 1.2576 High Jan 7
- RES 1: 1.2520/23 50-day EMA / High Jan 27
- PRICE: 1.2438 @ 16:19 GMT Jan 28
- SUP 1: 1.2387/2294 20-day EMA / Low Jan 23
- SUP 2: 1.2229 Low Jan 21
- SUP 3: 1.2100 Low Jan 10 and the bear trigger
- SUP 4: 1.2087 0.764 proj of the Sep 26 - Nov 22 - Dec 6 price swing
A bull cycle in GBPUSD remains in play. The pair has cleared the 20-day EMA, marking an extension of the reversal that started Jan 13. Attention is on the 50-day EMA, at 1.2520 and an important resistance. Clearance of the average would highlight a stronger bull cycle. Medium-term trend signals are unchanged, they remain bearish. A reversal lower would refocus attention on 1.2100, the Jan 10 low and bear trigger.
STIR: FED Reverse Repo Operation
RRP usage rebounds to $112.760B this afternoon after falling to $92.863B yesterday - the lowest level since mid-April 2021. The number of counterparties rises to 28 from 26 prior.
