Friday, October 07, 2016

Where Is the Pound Going?

The event of the day that caused the biggest stir among traders is undeniably the huge drop of the pound that occurred at 11:23 PM Greenwich time during the window between the American and the Asian sessions when the market was totally calm.

There are various theories about what caused this massive drop, but no one, not even the serious information agencies like Bloomberg, can pinpoint the source of it and there are various reports of different lowest levels.
In this case my analysis that GBP/USD would continue dropping turned out to be true.>>>

Right now there is no historical low that can serve as a support level that we can use to make any prognoses about the future development of this pair, so we can’t ascertain where the drop will end. It is a matter of time for a new support level to form and for the pair to rebound from it.