hi folks,
i was monitoring my long GBPUSD position when suddenly my 50 pips stop was touched, the pound was soldoff madly, it declined to the 1.5 mark then kept falling and oh my good look at that it fell like 350 pips in 2 hrs, i was shocked. what happened? what was the catalyst??? anything to do with AIG?
It was the Prudential PLC deal to buy AIG’s Asian business for $25 bln in cash and over $10 bln in stock that sent the pound downward. Got to watch the news, especially if you’re gonna trade the GBP.
GU just retraced from a monthy downtrend and just retraced on a daily downtrend. In short, bad pun intended, it’s been in short trend on D,W,M, for a while now.
If you were long and holding for longer term trade you were in the wrong direction.
It was a London bank shorting GBP on behalf of Soros.