Breaking: GBP/USD crashes below 1.23 amid immense coronavirus-related dollar strength

Yohay Elam FXStreet

GBP/USD has tumbled down below 1.23, nearing a 300-pip fall and trading at the lowest levels since October 2019. Since Monday, cable has shed around 800 pips, moves previously reserved for considerable Brexit developments.

Coronavirus fears have rattled markets and are causing extreme demand for the safe-haven US dollar. While global stock markets are recovering, the greenback maintains its strength.

President Donald Trump is set to speak shortly and is likely to declare a state of emergency. The UK House of Commons has announced new restrictions amid the outbreak.

Here is how the latest move looks on the four-hour chart. The Relative Strength Index is below 30, indicating oversold conditions, but the market environment is abnormal.

The low so far has been 1.2275 before it bounced. The Bank of England cut interest rates earlier this week in a coordinated move with the government.

Author

Yohay Elam

FXStreet

Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.

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