Pound Sterling Price News and Forecast: GBP/USD flash crash, drops from 1.2379-1.2242
|GBP/USD flash crash, drops from 1.2379-1.2242
The US dollar spiked hard across the board into the Tokyo fix, the last for Japan's fiscal year, sending sterling down 1.1% the yen down over 0.5%, EUR -.0.48% and AUD -1.8%.
As for the US dollar, the US Federal Reserve is back to the zero bound coupled with quantitative easing, measures last seen during the global financial crisis (GFC). However, the safe haven of the dollar gives it an edge. The US dollar is also broadly stronger at the start of this week, despite the rate of COVID-19 cases steeply on the rise, with the biggest jump in New Jersey.
GBP/USD Price Analysis: Consolidating in a contracting triangle
GBP/USD is lacking a clear directional bias for the second day and is trapped inside a symmetrical triangle or a contracting price range, as seen on the 15-minute chart.
An upside breakout would open the doors to re-test and possible break above the March 27 high of 1.2485. Alternatively, a range breakdown would imply an end of the bounce from the March 20 low of 1.1410 and could yield a drop to the hourly chart horizontal support at 1.2305.
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