Cable fell over 120 pips after the Fitch rating agency said that the UK economy was most at risk of losing its AAA rating. It didn’t say it would lose it, just most at risk. More to come.
17 Responses to “GBP falls hard after Fitch rating news”
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AUTOREFRESH 
good short term fading opportunity methinks, if the right level presents itself…hopefully I’ll have the brass to do it.
market knows about the ratings dangers.
similar thing happened to NZD…similar, but not the same.
woudl be great to see 6535. good place to buy there.
Mornig everybod. I’m hoding my shorts EUR/JPY.
Sean, Can I ask you something. (I don’t know it’s right or wrong, or foolish question or not). Did you notice that EURUSD and GBPUSD are very correlated. I mean in the price. Eg. If EURUSD now 1.4979, GBPUSD must 1.6679 (+/-). Now the GBPUSD 1.6613. Look at the last 3 digit, It’s 300 pips spread. Yesterday I’ve notice that they’re only 200 pips. So in my opinion, there is not strange for me if GBP fall to chase that target 300 pips spreads. I just don’t know which pairs will chase. But i only know. they must be 300 pips spread.
If they’re in 300 pips spread, they’re balance.
Decided to fade at 1.6615 with trailing stops. Looks like a good trade so far.
I think that fall was just a knee jerk overreaction, and price will likely resume trend.
Thanks to the report since I short GU at 1.6760. Already take profit at 1.6610
Observer, nice trade. I overestimated the strength of the reaction and missed my opportunity, so I’ll live vicariously through you, m’kay?
I knew that GBPUSD would fall after encountering 1.6780 resistance, but what I didn’t know was how fast and furious the fall is going to be. Wondered what caused it. Searched through the economic news but couldn’t find anything to explain this “phenomenon”. Forex Live is the first to report this and satisfy my curiosity. Keep up the good work.
Yeah, nice place to go long Observer. I got in at 1.6627 because I was stuck in another trade. Anyone have recommendations for how wide of a trailing stop to use to gain the most profit with GBP/USD? I’ve got mine set to 215 points (MT4) so it can have 20 pips of breathing room to grow but I was thinking of switching it to 115 points once it gets up a certain level. Any other ideas? (I’m a newbie)
Morning all,
I caught half the fall about 50pips. Wuite a surprise. Why do say 6535 is a good buy Jay?
wonder if the London session is going to pull it back on track.
for me that was a total surprise!
where did you find the info about the fitch speach time and topic in advance?
If the EUR steady at 1.4985, the GBP will chase to 1.6685 (300 pips). If done. there is no direction move. Now GBP 1.6667 from low 1.6605. GBP always lead the move, and EUR will follow. If the trend is up, GBP will rally faster than EUR just like yesterday. But EUR will follow slowly.
Jay, where is my money am getting closer to you
Ade, I have no idea what you’re asking me…
I decided to FADE your fade…I was already short from 1.6755 after last nights GBPUSD, and I proceeded to cover these shorts around 1.6625. Nice week’s pay. But then came the fade of the fade, only because I saw the comments about trying to fade the short term downward trend shift. Found some nice former support turned resistance around 1.6675 and am currently short again. Entry is also my stop, this order is very small, as the previous closed trade paid the bills…
If I were in this trade from 6015, I would probably think about taking profit here or trailing with a very tight stop, as Observer said would be the case — or at least taking partial profits as it was a totally discretionary call. Had I trailed, I would probably have been out of the trade by now.
Good luck on the short trade HI Trader. You seem to have nailed the intrasession top. I’ve missed my long entry way down yonder at 6535 — or still waitng depending on how one looks at it — so not doing anything in cable at the moment. Not ready to short the pair at this price. No sir.
Jay-
Lol, yes indeed, a short right now (or a long) would be a bit bold. Or perhaps, uninformed. You sound like neither : ) Sorry about the missed long futher down. I missed it as well, and reversed my outlook to try and catch a short term top if last night only because it appeared that as the US equities rally gained steam, the GBPUSD as well as GBPJPY began to weaken, perhaps due to the fact that they had been rallying since the open on Sunday. I have a 100% fib retracement from the large moves up last week around 1.6685. If we head over that with conviction (close a 15 min candle, follwed by a second that takes out the previous one’s high) I will cover my position.
Sean, If you watch the GBPUSD and EURUSD right now. That is what I’m talking about. Approximately 300 (+/-) pips spread. I need your opinion.
Thanks