I definitely don't think the market is currently untradable. And especially those like myself who trade longer term or are already short in the direction of the medium term trend. And if you notice the close on the daily chart below 1.40 and very bearish pound fundamentals make the gbp/usd an ideal short term to target the 1.35 area.
Also of concern in the markets are the mounting losses at HSBC Bank plc, who were for a long time regarded as the safest bank in the world. Investors are speculating that the £12 billion capital raising announced last week will not be sufficient to buffer the bank from futures losses of its US subsidary.
Then we have Barclays Bank plc, who are in private hands. There is speculation that investors may be increasingly reluctant to place their cash with these guys and will instead opt for the safety of a bank with a guaranteed balance sheet. The market has long since expressed concern and suspicion over the accounting treatment Barclays has applied to many toxic assets compared to its rivals both in the UK and the US. Barclays is also carrying the stigma of being an under-capitalised bank.
All of the above, in addition to the QE measures, have certainly shifted sentiment dramatically.
with that said the direction will be up longer term as you trade, look at the dollar index
The USD Index has closed below a 3 month support line drawn off of the December 2008 and February 23rd lows. This is a strong sign that the dollar is headed lower across the board in the coming weeks and perhaps month +.
Don't chase the market, Let the market come to you
