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Risk-On Fulled By US Infra Spend

GILTS

Opening calls

SOUTH AFRICA

SAGBs Firm at the Open, Risk Premia Ease W/W

0.8800 Remains Under Pressure

EURGBP TECHS
  • RES 4: 0.9093 High Dec 29
  • RES 3: 0.9085 High Jan 6
  • RES 2: 0.8950/96 50-day EMA / High Jan 12
  • RES 1: 0.8891/0.8925 20-day EMA / High Jan 18 and key resistance
  • PRICE: 0.8807 @ 16:14 GMT Feb 3
  • SUP 1: 0.8796 Low Feb 2
  • SUP 2: 0.8764 1.0% 10-dma envelope
  • SUP 3: 0.8759 Low May 12, 2020
  • SUP 4: 0.8676 2.0% 10-dma envelope

EURGBP reaffirmed the bearish case Tuesday as the cross printed a new 2021 low. Further weakness is seen likely with the 0.8800 handle still under pressure. A clear break of this level would open 0.8759, the May 12 low from last year. Moving average studies are pointing south reinforcing current trend conditions. On the upside, 0.8925, Jan 18 high remains a firm resistance. A break of this level is required to ease the bearish pressure.

MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com