US: Republican Voters Firmly Behind Venezuela Intervention

• US Data/Speaker Calendar (prior, estimate). All times ET
• 12/10 0700 MBA Mortgage Applications (-1.4%, --)
• 12/10 0830 Employment Cost Index (0.9%, 0.9%)
• 12/10 1130 US Tsy $69B 17W bill auction 
• 12/10 1400 FOMC policy annc, includes summary of economic projections
• 12/10 1400 Monthly Tsy statement
• 12/10 1430 Fed Chair Powell press conf
• Source: Bloomberg Finance L.P. / MNI

Tuesday's Europe rates/bond options flow included:

• OEF6 116/115.5ps, sold at 20 and 19.5 in ~9.7k
• RXG6 128/129.50cs 1x2, bought for 22.5 in 3k
• ERF6 98.0625/98.1875/98.3125c fly vs 97.9375/97.875ps, bought the ps for 1.25 in 5k
• ERH6 98.0625/98.1875/98.3125c fly, bought for half in 3k
• ERH7 98.50 call, paper pays 4.5 for 10k
• SFIH6 96.55/96.65cs, bought for 1.5 in 7.6k

• RES 4: 1.3471 High Oct 17   
• RES 3: 1.3452 50.0% retracement of the Sep 17 - Nov 4 bear leg 
• RES 2: 1.3416 High Oct 21
• RES 1: 1.3385 High Dec 04
• PRICE: 1.3314 @ 16:35 GMT Dec 09
• SUP 1: 1.3267 50-day EMA   
• SUP 2: 1.3235 20-day EMA
• SUP 3: 1.3180/25 Low Dec 2 / Low Nov 26 
• SUP 4: 1.3038/10 Low Nov 20 / Low Nov 4 & 5 and the bear trigger       

A bull theme in GBPUSD remains intact. The latest pause appears to be a flag formation - a bullish continuation signal. The breach of  the 50-day EMA undermines a recent bearish theme and highlights a stronger reversal. This paves the way for an extension towards 1.3452, a Fibonacci retracement point. Initial firm support is seen at 1.3235, the 20-day EMA. A move below this average would be a bearish development.