Auslanco - GBP/JPY and GBP/USD (newstrade)

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Aug. 26 (Bloomberg) -- Federal Reserve policy makers agreed this month that their next change in interest rates will be to raise them, while reaching no conclusion on the timing of such a decision.

Quoting worlhin

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So Fed will raise interest rates, it will push up USD right?
now the question is G/U down more or U/J up more...
but i thot U/J shld be going down soon?
confuse... confuse...

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Quoting worlhin

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So Fed will raise interest rates, it will push up USD right?
now the question is G/U down more or U/J up more...
but i thot U/J shld be going down soon?
confuse... confuse...

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Quoting rrram2

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My observation is that as USD rates go up from fed rate hikes, it increases he demmand for USD globally, it may make it more expensive but dmand for a currency is most closely based on its interest rate.

For example before we dove from 6.25%or whateve it peaked at, we had huge amounts of money in the usa as a result of many foreign interests wanting to invest here as the return was high, as rates crumbled foreign investors continued to pull their foreign money out.

SO in general an increase in a currencies interest rate, has a positive effect on it. As to ome possible ST swing in the oposite directing that may be
possible or even probable but LT the higher the rate goes on the USD the higher the USD will go up VS the JPY, especially as more traders come back into the carry trade LT.

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Quoting DutchTrader

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UJ trying to break below 109.50

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Quoting PJkiller

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You holding your longs through fomc???

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Quoting DutchTrader

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I'm looking for a breakout below 109.50

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Quoting lilmoe

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that's where the 4h 50ema is sitting, price is constantly rejecting 4h gann. now if price closes above 4h gann i think we're up for another test of 110.2x area. on the other hand, this 4h candle is sitting at a short term 4h TL that would suggest challenging 108 area again.

i have another observation; we might be having something like a complex h/s formation showing on the 4h chart.

chart is better than words:

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Quoting Tovinces

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Hey, traders, I'm Tovinces and I want to share my view on GU and UJ 1 hour charts!

I've noticed there similar formations, a common type of triangles, which in my (Russian) language are known as "flags" (I'm not sure this formation has the same name in English).

On the cable chart the flag has the same direction as the trend (bearish), according to the formation rules this means breakout in the opposite direction (bullish). In our occasion it's possible as the continuation of correction move (the price hasn't touched 38.2 fibo level in correction movement yet). In the attached picture you can see possible breakout, though it can be only the correction of the upper line.

What's more, the pattern at UJ is similar: we have bullish flag after bearish movement, that indicates possible following down movement. Speaking about this case, I doubt this would happen, it's more likely for me that Uj goes up... but the time will show whether I'm right.

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Quoting Evilgoat

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Maybe the bulls are confused http://www.authorstream.com/Content/...int-118_88.jpg

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Quoting malcolmb14

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Your English is 600 % better than my Russian lol

nice charting

Here is what I am seeing ... uptrend channel .... with pennant formation (bullish continuation) within the channel upside 111 maybe unless price breaks down out of that channel at 109.

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Quoting lilmoe

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i think 108 area is the critical level here.

if we break 110.20 on a 4h level, then my prediction of a complex h/s is void.

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