FED: US TSY 5Y TIPS AUCTION: HIGH YLD 2.367%; ALLOTMENT 68.33%

• US TSY 2Y NOTE AUCTION: HIGH YLD 4.787%; ALLOTMENT 33.42%
• US TSY 2Y NOTE AUCTION: DEALERS TAKE 13.19% OF COMPETITIVES
• US TSY 2Y NOTE AUCTION: DIRECTS TAKE 29.02% OF COMPETITIVES
• US TSY 2Y NOTE AUCTION: INDIRECTS TAKE 57.79% OF COMPETITIVES
• US TSY 2Y AUCTION: BID/CVR 2.63

• RES 4: 1.3599 High Aug 28
• RES 3: 1.3568 High Sep 9 
• RES 2: 1.3496 20-day EMA
• RES 1: 1.3434/75 Low Aug 7 / 50-day EMA
• PRICE: 1.3331 @ 16:40 BST Sep 22
• SUP 1: 1.3326 Low Sep 22
• SUP 2: 1.3274 Low Jul 28
• SUP 3: 1.3266 76.4% retracement of the Jun 24 - Aug 21 bull leg
• SUP 4: 1.3219 Low Jul 1  

A bearish theme in GBPUSD remains intact and a fresh cycle low Tuesday reinforces a bear theme. Price has recently breached the 50-day EMA, and a trendline support drawn from the Jun 24 low. This highlights a stronger reversal and potential for a deeper retracement. Sights are 1.3266, a Fibonacci retracement. Initial firm resistance is seen at 1.3475, the 50-day EMA. Short-term gains would be considered corrective.         

• The 2Y WI holding around 4.782% ahead of the auction cutoff at 1300ET - highest yielding 2Y auction since May 28, 2024, compares to last month's 4.204% high yield stop (4.209% WI) - .