Originally Posted by JohnG_FX

Greetings all.

Haven't posted for a while as there was nothing to post, I said a couple of weeks ago we were going down to 1.9400 the same is true, and over the next month or so I would not be surprised to see 1.8600's .

The low on this current move down is not due for another week, given the rapid move down we have had already I would not be surprised if we had a corrective bounce, perhaps as high as low-mid 9800's before another leg down.

Big day today for GBP and EUR with both banks announcing rate decisions.

BOE have 2 options, hold or raise. they cannot lower with the current inflation levels above the government target, no matter how much all the politicians whinge.

There is an outside chance they will raise (I personally think they should) but very unlikely.

I'm expecting cable to get bid after the news.

Trichet and ECB, he will be hawkish in his rhetoric but in all probability will do nothing and leave rates on hold.

I'm expecting EUR/GBP to sell off today giving cable a bit of a lift.

Asian accounts have been buyers of EUR this morning, also Deutsche Bank giving a Euro buy recommendation currently helping the EUR.

I have taken a scalping long on cable this morning at 9490 with a stop at 9450. open target atm but in the bigger picture I am looking to reverse to shorts, albeit from better levels than now. I am not tempted to sell any breaks, if we go down and it takes my stop then it will be a case of waiting until ITD6 is in and then go long..

I have set up a blog within this site and will update it periodicaly with my delta counts and views- there is nothing on there yet but will post some charts either this evening or over the weekend.