When the Financial Times reported the comments made by French President François Hollande regarding his stance on a 'harder line treatment' on UK's BREXIT, in the presence of EU's negotiator Michael Barnier and EU President Jean-Claude Juncker, all hell broke loose which saw the near collapseof the Sterling Pound that rippled through the market. And this is on top of the statements made by UK PM Theresa May which served as the catalyst that started off the decline.
PRICE ACTION Analysis Focused on GBPUSD & ERUGBP Cross & USD Index
With that said, #GBPUSD collapsed at the bottom price @1.1992 (21:00 hr) traded from 1.2655; a decline of 663 points in just barely 2 minutes. With a 400 point recovery thereafter that clicked in a rapid price action near the 1.2390 as of hour closing, while currently @1.2440 levels.
Is it sheer coincidence or simply an Effective Strategy? Again, this has been VALIDATED for the third consecutive time since September 22, 2016. for your reference. Watch for market Pullbacks!
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"What was the real low marked on CABLE?" Based on your trading platform
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ReplyDeleteA real and careful study of price action monitoring and market behavior before an unexpected event can assist trade position especially by sheer coincidence being in the right position would boost confidence in one's trading ability. On the other hand, refusal to accept what is already a defined / reinforced trend direction like CABLE while contradicting such trend could be disastrous when caught flat-footed in a relatively short period of two minutes that can trigger more losses when not properly hedged against uncertainty.
ReplyDeleteThe irony of the matter whenever rapid price action occurs traders would definitely need more than 2 cups of water trading these markets.
ReplyDeleteNot too far from our market & price call on GBPUSD low based on Thomson Reuters low price.
ReplyDeleteLink:
http://finance.yahoo.com/news/sterling-slumps-support-levels-crumble-002300983.html
FLASH CRUSH: A Matter of PRICE ACCURACY
ReplyDeleteThe British Pound better known as CABLE lost a great deal in value in a matter of a couple of minutes, attributed to statements by French President Francois Hollande. This has served as the main catalyst for the rapid decline that caught US & European traders' heels unexpectedly.
The culprit that caused an initial 10% decline that resulted as a 'flash crash' had spread across the newswire thereafter that came from a computer-initiated canceled order on the short-side of the market quoted in a flash @1.1378 in the early Asian trading session
http://www.megatrade101.com/index.php/component/content/article/72-latest-ll/913-flash-crash-a-matter-of-price-accuracy
Validated Price call on CABLE's low nearest to the marked quoted with Thomson Reuters dealing system that triggered a low @1.1378 before revision and compared with our projected price extension @1.1295. a difference of 85 pips called last June 14, 2016
ReplyDeleteOct. 12, 2016 - A Better Part of #CABLE's Price Action History
ReplyDeleteCABLE's decline have equaled to or cumulatively greater than the decline occurred last September 16, 1992 when John Majors walked out from the European Rate Mechanism.
However, the price difference came from a high @2.0180 while the BREXIT re-emerging sentiments recently came from a failed 1.3180 high which drew a quick pullback ending below the 1.3120 and below the 1.2880. And with an interbank controversial low price @1.1478 while currently trading @1.2180 to this writing as of Oct 12, 2016 US trading session. Well, it does pay to have outlived such price action even from historical standard.
https://www.tradingview.com/x/X9YE00HF/