GBPUSD TRADES AT 1985 PRICES AFTER FLASH CRASH
The pair has been hammered lower in recent trade as the flood gates opened after bears defended 1.1200 and piled on the pressure. Currently the pair is looking to test the 1.1100 handle were bulls will be standing by to try and drive prices higher in an attempt to recoup some of this week’s losses. Resistance is at 1.1125, 1.1150 and 1.1175 while support is at 1.1075, 1.1050 and 1.1025.
The GBPUSD experienced a drop of over 6% overnight as the pair smashed through stop after stop, making lows at around 1.2000, prices not seen since March 1985. The pair has since bounced back to as far as the 1.2450 level where the battle continues. Upside targets are at 1.2475, 1.2500 and 1.2525 while downside targets are at 1.2425, 1.2400 and 1.2375.
The pair dropped to 0.7562 after bears broke through the neckline of the head and shoulders before bull entered, driving price back up to the 0.7590 resistance level. As it stands 0.7575 forms the equilibrium price with bears currently in control as they look to target 0.7550 and potentially 0.7525 and 0.7500. However, should bulls take control of 0.7575, we would see them make a run for 0.7600, 0.7625 and 0.7650.
Bears continued to pound the precious metal and managed to reach their goal of 1250, the tried and tested support level held up as bulls lined up to defend the area with hopes of bears taking profit making it a bullish haven and a potential springboard to 1260, 1270 and 1280. However, should bears manage to close below 1250, we would see further downside to 1245, 1240 and 1235.