GBP/USD plummets to 1.3900 and rebounds sharply, a fat finger trade?

Haresh Menghani FXStreet

The GBP/USD pair extended its retracement slide from the 1.40 neighborhood and tumbled to fresh session lows in the last hour, albeit quickly recovered few pips thereafter.

It is turning out to be yet another volatile session for the major, which initially spiked to an intraday high level of 1.3995 but then retreated sharply closer to the 1.3900 handle on the back of incoming Brexit headlines.

The latest leg of fall led by a news report that Brexit opponents are preparing a major campaign, which, according to a leading pro-EU campaigner, has close to a 50:50 chance of stopping Brexit by blocking Prime Minister Theresa May’s divorce deal.

The pair, however, quickly rebounded over 60-pips from lows and the price action now seems to suggest that a sudden plunge was potentially due to a “fat finger” trade.

Meanwhile, a goodish pickup in the US Dollar demand, despite falling US Treasury bond yields, might continue capping any further gains, at least for the time being and amid empty US economic docket.

Technical levels to watch

Bulls would be eyeing for a clear breakthrough the 1.40 handle, above which the pair seems all set to dart towards testing the 1.4075-80 supply zone en-route the 1.4100 round figure mark. On the flip side, immediate support is now pegged near mid-1.3900s, below which the pair is likely to head back towards resting the 1.3900 handle.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

GBP/USD holds near Feb. 11 highs as bulls await breakout above 1.3660

The GBP/USD pair trades with a positive bias around mid-1.3600s at the start of a new week and remains well within striking distance of its highest level since February 11, touched on Friday. Moreover, the fundamental backdrop favors bullish traders and backs the case for an extension of a nearly one-month-old uptrend.

EUR/USD holds steady amid US debt strategy

EUR/USD remains stronger for the fourth successive trading day, hovering around 1.1680 during the Asian hours. The currency pair holds its ground as the US Dollar struggles under pressure from newly announced United States fiscal moves. The Treasury Department surprised financial markets by pledging to at least double its buybacks of longer-dated government debt in an attempt to rein in rising bond yields.

Gold keeps rallying toward $4,700, fresh three-month highs

Gold extends its last week's stellar performance into Asian trading on Monday, refreshing three-month highs beyond $4,600. The precious metal capitalizes on persistent US Dollar weakness, following the US Treasury's buyback plan amid fresh US-Canada trade tensions.

Here's what I learned trading meme coins

I’ve been trading cryptocurrencies for the past seven years, with meme coins becoming one of the most exciting and implacable parts of my experience. I love them because they represent internet culture and community sentiment, and, let’s be honest, extreme speculation. Newly launched meme coins were especially tempting: get in early enough, I thought, and a small bet could turn into a huge return.

The week ahead: Jackson Hole and Nvidia results to take focus away from Trump

We start the week with the focus squarely on the US. Rising Treasury yields, the Jackson Hole Symposium, inflation and GDP data, along with tariff risks, will dominate market action in the coming days.

$20 billion offered, $2 billion taken: Why Treasury doubled its buyback cap

The US Treasury moved off its own calendar on Wednesday, and that is the part worth sitting with. At 12:32 GMT, the department said it would at least double the size of liquidity support buyback operations in the 10-year to 20-year and 20-year to 30-year sectors, lifting the maximum from $2 billion per operation to at least $4 billion, effective September 9 and running to November 4.