Over a century ago, Charles Dow codified one of the first technical analysis frameworks, which eventually came to be known as Dow Theory. One of the basic tenets of the theory is that the market immediately discounts all new information as soon as it is released, a premise that Dow’s theory shares with the influential Efficient Market Hypothesis (EMH). In other words, the market is forward looking. Without getting into a philosophical debate about the merits of EMH or Dow Theory, it is clear that markets adjust to new information very quickly, bringing us to the GBPUSD. Last week, traders were getting tied in knots ... (full story)