GBP/USD correcting the flash crash, but bear market personified
- GBP/USD is currently trading at 1.2530 with the lowest recorded price seen all the way down at 1.2441, the lowest since April 2017.
- GBP/USD hit hard on the cross flows as seen as a risky trade considering Brexit.
We are well and truly in a bear market where these type of shocks can take place and it was AUD/JPY that took the pillars away from under the FX space that fell from the 76 handle to below 71. GBP/USD was sent down as well with the risk aversion fully on during what was a quiet illiquid early Asian session.
Apple's CEO calls out China and US trade as problematic
Tim Cook, Apple's CEO, was speaking to CNBC and has blamed the trade tensions between U.S. and China pressuring sales of iPhones in China and emerging market weakness, while FX and translation had also been a big challenge. Macroeconomics have been to blame in the most part by the sounds of it which indicates we are likely to hear more on more of this from multinationals as we move forward during 2019.
We are now in April 2017 lows and below 1.2477 targets the 78.6% retracement at 1.2109. S2 is located at 1.2361 and S3 at 1.2245. 4hr RSi is now on the brink of breaking below 30 and there will be bulls looking to get in at these bargain basement levels which will continue to support the correcting.