The story of many traders’ years so far has been China fears causing a big sell-off in the indices.
But there’s been another titanic shift moving in the deepest of liquidity waters: The British Pound has been on the receiving end of a triple threat smackdown.
#1 – GBP/JPY
The greatest destruction of the GBP has been seen again the Yen.
It took only two trading days for the GBP/JPY to close a daily candle beneath its low for 2015.
#2 – GBP/USD
Old cable is a bit more stable.
It broke but could not close beneath its 2015 low on Thursday.
#3 – EUR/GBP
The political problems between the mainland and the British Isle shows itself well on the EUR/GBP.
Despite ALL OF THE QE that the ECB has put in, the Euro is RISING against the Pound.
The EUR/GBP faces a strong prior resistance level on the weekly and daily charts just beneath 0.75, and should it break above, there’s not much holding it from a re-test of 0.78.
