The sharp sell-off in GBP/USD this morning was on the back of comments from Bank of England Governor Mr. Mervyn King that the UK was probably entering recession for the first time in 16 years. The high for Sterling yesterday 21 Oct was 1.7198. The low today (so far) is 1.6199. That’s an incredible 10 big-figure range in the space of under 48 hours. However, the selling is not finished. I doubt if we will stay above 1.6450 for long. The price as I am writing this is 1.6440. I prepared some charts for my clients earlier today and I share that with you. Take a look. They were prepared for finance managers with long-term exposures. (If you are a short-term player, perhaps you should try selling a small amount near 1.6480 with a nearby stop) and look to take profits below 1.6100.
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