Breaking: GBP/USD plunges below 1.19, down over 1,300 in 9 days as severe recession feared
|GBP/USD has been extending its downfall and has dropped below 1.19, falling to levels last seen in October 2016, during a flash crash. At the time of writing, cable has reached a low of 1.0877 with a limited bounce. It traded near 1.32 on March 19, a fall of over 1,300 pips in nine days.
The coronavirus crisis is weighing heavily on markets with forecasts of a severe recession coming. UK Prime Minister Boris Johnson spoke of a "wartime government."
See: Three reasons for the sell-off, with the bottom out of sight
Here is how the crash looks on the daily chart:
The daily chart comes in handy amid the fall. The currency pair is down to the lowest since October 2016, when it suffered a flash crash. The Relative Strength Index is well below 30, indicating extreme oversold conditions, but abnormal conditions mean it could continue lower.
Support awaits at 1.18 and 1.17.
Resistance is at 1.1957, the September 2019 low, and then by 1.20 and 1.2120.
More: GBP/USD: Momentum of the sell-off on Cable continues [Video]
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.