GBP/USD crashes below 1.20 - Your capital is at risk
http://www.admiralmarkets.com/analyt...hes-below-1-20
GBP/USD
4 hour
https://fxmedia.s3.amazonaws.com/art...10-2016gu4.png
The GBP/USD broke support (dotted green) yesterday and surely did extend the decline towards the Fibonacci targets (see the multiple red arrows mentioned in yesterday's wave analysis). Of course, the massive drop went even further than 1.24. The news is mentioning two potential reasons: a big order was placed by accent (less likely variant), or more probable, algorithms triggered further selling which trigged more algorithms during a time with low liquidity. In any case, the sudden GBP drop and retracement most likely completed a wave 3 (green) and started a wave 4 (green). The Cable is expected to respect the Fibonacci levels of wave 4 vs 3.
1 hour
https://fxmedia.s3.amazonaws.com/art...10-2016gu1.png
The GBP/USD massive decline occurred at a time when the Cable was already in a strong bearish momentum this week. Waves 4 are typical choppy and correction and typically price will start to build a range or consolidation zone (arrows going sideways).
http://www.admiralmarkets.com/analyt...hes-below-1-20
GBP/USD
4 hour
https://fxmedia.s3.amazonaws.com/art...10-2016gu4.png
The GBP/USD broke support (dotted green) yesterday and surely did extend the decline towards the Fibonacci targets (see the multiple red arrows mentioned in yesterday's wave analysis). Of course, the massive drop went even further than 1.24. The news is mentioning two potential reasons: a big order was placed by accent (less likely variant), or more probable, algorithms triggered further selling which trigged more algorithms during a time with low liquidity. In any case, the sudden GBP drop and retracement most likely completed a wave 3 (green) and started a wave 4 (green). The Cable is expected to respect the Fibonacci levels of wave 4 vs 3.
1 hour
https://fxmedia.s3.amazonaws.com/art...10-2016gu1.png
The GBP/USD massive decline occurred at a time when the Cable was already in a strong bearish momentum this week. Waves 4 are typical choppy and correction and typically price will start to build a range or consolidation zone (arrows going sideways).