Cable Update (GBPUSD)

I think that the pair is still in bullish momentum as shown in 4H TF chart...

Long @ 1.57907, looking above 1.83ish level, and eager to be stopped out @ around 1.574ish level should the market can prove me wrong...

thx mate, also thx to master grashid, wormie, and cloggie for the direction

Got in late unfortantly... Waited for 1.5750 to be broke. Still got 30 pips outta it though. Can't complain about that.

Are all hopes of 1.65 gone?

Our Lady seems to want to take some little breath up. If it continues beyond 5800 I won't bet my baby's school fees on it. Any idea?

Precap2

I guess a lot depends on this fomc due in 20mins or so and tomorrow's Uk Boe Qtrly Inflation report/M. King's comments.

G/L

You too! I take it trade by trade but in the long run I hope for returned economic strength. Better for everyone that way!

NEW YORK (Dow Jones)--Treasury prices pushed up Tuesday afternoon after the U.S. government's three-year note auction drew solid demand, yet the move was modest as market participants geared up for results from the Federal Reserve meeting.

The three-year notes were popular, despite being auctioned at their lowest ever yield, 0.844%. Treasurys maturing in the next 10- to 30-years were left higher and shorter-maturity Treasurys just a bit lower after the $34 billion auction, which was a success on all fronts. It was 3.31 times subscribed, which was better than average, and the second highest bidding ratio since the start of 2009.

Treasury market participants had driven down the price of the notes heading into the sale, helping the auction, and proving wrong investors who had suspected buyers might stay away from the sale as it came just before the Fed meeting.

In recent trade, the two-year note was off 1/32 to 0.553%. The two-year yield hit a record low of 0.494% Friday; it has continued to hit new record lows this summer. The three-year was off by 1/32 to 0.808%. The 10-year was up 2/32 to 2.822%. The 10-year yield dipped as low as 2.806% this week, a level it was last at in April 2009. The 30-year was up by 17/32 to 3.990%.

Indirect and direct bidders both took a healthy amount of the notes. Indirect bidders, domestic and foreign institutions, including foreign central banks, took 41%, about what they took in July. Direct bidders, large money managers and hedge funds as well as foreign investors, which have their own accounts with the Treasury, took 16%, more than the 14.3% in July and above the 14.5% four auction average.
"Bottom line, this was a very strong auction," said Dan Greenhaus, chief economic strategist at Miller Tabak & Co. in New York, "and despite the howling calls that bonds are massively overbought and the least attractive investment vehicle, investors continue to participate in the auctions in amazing numbers."

The $34 billion sale was the first Treasury auction of the week. The Treasury will sell $24 billion in 10-year notes Wednesday and $16 billion in 30-years Thursday.

Next up, the market is keen to see what the Fed has to offer.

No one is expecting the Fed to tweak interest rates when it convenes Tuesday afternoon to discuss the state of the economy, although investors are eager to see whether policy makers will mention the possibility of buying more Treasury or mortgage bonds to help support the economy. Chatter that the Fed may have to do so has grown recently amid a string of weaker U.S. economic data.

While the U.S. government bond market has built in the chance that the Fed may buy more bonds, with yields lower than they otherwise would be, most investors suspect the Fed will stay mum on so-called quantitative easing Tuesday, instead acknowledging weaker economic growth and maintaining that interest rates will stay low for an "extended period."

If that's the case, Treasurys could suffer a bit, with prices falling and yields pushing up, especially in the five-year sector.

"The base case is that they do very little new," said Carl Lantz, a fixed income strategist at Credit Suisse in New York. "I don't think we've reached the point where large scale quantitative easing will be called for," he said. "There's certainly no rush to do it."
-By Deborah

you're completely lost.
the thing was usdbear mentioned 1.55 to buy from. He picked that number. So the question raised was, if one had a sure target, in this case 1.55, why not just sell into it & when price reach there reverse the trade & long. Got nothing to do with technique whatsoever.
It's not wrong on his part to remain flat till it reaches that level. Being flat is also a position, just that if it was someone like myself, I won't mind risking a bit & sell in to the level if I had picked it really.

Fomc now T-5

'With volatility comes opportunity (for gain and for loss)

Yup you lost me here. What's your point? That I'm lost? Ok.

Fomc now T-1

G/L

Target hit.

Out until Late Asian/Frankie.

Enjoy the day!

short at 15875

1. now we wait for the BOE.... maybe 1.65 isn't dead

2. 4xstar and cloggie,

Have you considered using point and figure charts for river boxes? just as a visual aid

and so it came to pass

G/L

You have a great day too Magix. Thanks for your insight yesterday and today!

Look how she skidded to a stop at Cloggie's infamous .5904 line ... did anyone get in on the ride? I managed part of it .. wheee ... luckily I waited for her to hit that line.

the 1hr chart shows where price is pulling back from

G/L

Yeah, I noticed that too... I literally jumped in for a couple of seconds and caught myself a quick 20 pips.