Watch out below as the dollar gets smashed, stocks get smashed. Bond yields plummet (10 year below 2%).
The GBPUSD is surging and has taken a look above the 100 and 200 hour MA (1.6039 and 1.6051 respectively – see chart below) . Traders are scrambling and off sides and feeling the pain. The midpoint of the move down from October 9 comes in at 1.60497.
NOW….As fast as it went up, it has come back down and moves toward the 1.6000-13 area. This is the 200 week MA and the 50% of the move up from the 2012 low. This should hold support. Stops below 1.6000 now.
The markets are in fast market conditions. In these situations, be careful. Do not over-leverage!. If you prefer to watch, there will always be another trade. The forex market is not alone as bonds, stocks and forex are all whipping around and you can be sure, the impact from each are being followed by each- feeding on the whips.
