GBP takes a dive | Forex Factory

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GBP takes a dive

  • #1
  • First Post: Oct 5, 2013 1:41pm Oct 5, 2013 1:41pm
Can someone please explain why the pound had a major sell off against all major currencies on Friday 4th October (2013). Did anyone see it coming? Were there any news releases, fundamentals, sentiments or technical indicators that gave a warning? When a currency sells of like that against all other major currencies there has to be some reason. What was it? Thanks. The chart attached is GBP/USD, but the story was the same with all GBP pairs.
Attached Image (click to enlarge)
Click to Enlarge Name: GBP:USD.4.9.13.jpg Size: 442 KB
Tellboy
  • #2
  • Oct 5, 2013 1:44pm Oct 5, 2013 1:44pm
That's a nice double top, but it does not explain why price fell like a stone. Did so many traders play the technicals and create a fire sale? Any suggestions?
Tellboy
  • #3
  • Oct 5, 2013 1:48pm Oct 5, 2013 1:48pm
Quoting tellboy
Can someone please explain why the pound had a major sell off against all major currencies on Friday 4th October (2013). Did anyone see it coming? Were there any news releases, fundamentals, sentiments or technical indicators that gave a warning? When a currency sells of like that against all other major currencies there has to be some reason. What was it? Thanks. The chart attached is GBP/USD, but the story was the same with all GBP pairs. {image}
The Pound had gain a lot of value for the past 4 weeks. People had been buying it and now they are taking their profits. Plus we learned shortly that there wont be any rate increase. I went short on the Pound against the NZD and the CAD for most of the week, but me too was surprise on the magnitude of the fall.

If you are new to this market you have a lot to learn. Even tho the fundamental can support the rise of a currency, the pair has to rest at some time

Anyways, I hope it helped you out. Good luck in your trades
  • #4
  • Oct 6, 2013 5:20am Oct 6, 2013 5:20am
Quoting tellboy
Can someone please explain why the pound had a major sell off against all major currencies on Friday 4th October (2013). Did anyone see it coming? Were there any news releases, fundamentals, sentiments or technical indicators that gave a warning? When a currency sells of like that against all other major currencies there has to be some reason. What was it? Thanks. The chart attached is GBP/USD, but the story was the same with all GBP pairs. {image}

GBP is already at its top level and there are a lot of selling pressure. It will re-test at 1.540 for any further up. More over if USD will gain its strength back this week, it will go down further.
  • #5
  • Oct 6, 2013 7:03am Oct 6, 2013 7:03am
Quoting tellboy
Can someone please explain why the pound had a major Did anyone see it coming? Were there any news releases, fundamentals, sentiments or technical indicators that gave a warning? When a currency sells of like that against all other major currencies there has to be some reason. What was it? Thanks. The chart attached is GBP/USD, but the story was the same with all GBP pairs. {image}

xxxx
Time hides Nothing
  • #6
  • Last Post: Oct 6, 2013 7:26am Oct 6, 2013 7:26am
Thanks to all for your responses. Much appreciated.
Tellboy
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