Wednesday, July 21, 2010

flash crash in GBP/USD


A computer glitch at Dutch bank Rabobank Wednesday caused a sudden and fleeting slump in sterling, traders at other banks said, marking the second such currency-market blip for the week.
The pound tanked by around 1% against the dollar at the outset of European trading hours, causing confusion for a moment before the currency quickly sprang back.



I don't buy the "computer glitch", computer don't make error, it's human. If you have a chart for GBP/USD, you can see we are heading to where it was the crash low. Same thing happened in DOW 1000 points crash. We get there couple days later. If you bet base on not trusting the news said, the odds are in your hands.

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