And when there are no news they barely move, especially GBP/USD. I stopped trading that pair at the beginning of last week and I still haven’t resumed trading it.
Hi Guys, There is a good amount of information in the technical analysis area here as well as that available from other sources. I believe a significant correction on Cable is inevitable and given the force of the initial downward move; trying to identify and catch the turn moment would provide the most efficient use of ones time, trading resources, research and accumulated experience.
It’s logical for there to be a correction after such a massive drop, but on the other hand at the moment the pair is hugely affected by politics and news, so there is no guarantee it won’t start dropping again soon.
That is right, although it is still ranging right now and unlike typical announcement trading, I believe the direction on the news in this case is more predictable on the fundamental implications for the UK economy.
Question. What caused the drop - which market participant contributed most to the drop - were they real world factors or speculators.
Greetings. The spike charts for NFP have been quite good the last 12 months. I was wondering if you think there could be especially more activity in EURUSD and GBPUSD given Brexit.
Some dropping today below, the main low. Trying to figure out who the market participants responsible for the this collapse are. It doesn’t make sense for real businesses with demand for foreign currency to suddenly exchange immediately post brexit in the early hours of the morning - or are the banks executing those deals for their clients.
It does make sense for asset managers who may have restrictions on the investment grade of the products they are allowed to buy to check out of sterling denominated assets and or harbour elsewhere. If they are the movers here, then especially given the downgrade of the UK, it will take a very long time for that money to come back.
We’ll have to wait and see how the US Change in Non-farm Payrolls announcement will affect it later today, hopefully it will cause more than a whipsaw.
I hear echoes of the EurUsd thread on here, Dr. Lexy… It is like reading a British weather forecast: “It may rain, with sunny spells, calm in the morning with possible gusty winds later in the day and snow over the hills”… Haha
GBP/USD couldn’t break above the resistance at 1.3480, formed a double top there and then a hanging man candlestick below that level on the four-hour time-frame and naturally started falling. Next target is likely 1.3280.