I have been looking for Sterling to find support around 1.5850 because that area (as marked in this chart) was respected several times in the past 20 years. But today is a different story. Incredible as it seems, we were at 1.75 just 4 days back, and today’s low was 1.5260. That is a cool 22 BIG FIGURES down. It reminds me of Black Wednesday. As I was repeatedly saying, buying at 1.5850 is not a recommendation for short term traders. It is a recommendation for corporate managers because they have hedging needs, and have a longer term perspective. Even for them, the damage is severe, and if they have not already locked into a trade at that level, they are better advised to wait. As I have explained in the attached chart, getting above 1.5850 now needs help from the Central Bank.
- Sterling in a free fall
Here is yesterday’s chart!
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Hi Mr.Ramki,
do you expect this one way trafic in FX should be reversed sooner for a longer term rally again?
GBP looks like finding some base around 1.53/54 levels….
waiting for your new post on GBP
regards
Krishna
Hello,
There is a lot of volatility in the market, and Sterling could run to around 1.6360. But the downtrend is not over yet, and I would be happy to exit longs on this rally.
Hi Mr.Ramki,
thanks for your view, I closed all my long in GBP at 1.65.
regards
Krishna