Extreme free fall -> extreme values (ATR, haDelta)
GBPUSD is mega bearish. But in such big bearish moves, we'll have massive pop ups too.
Two important things you have to pay attention to:
1. Volatility is extreme and it will stay elevated for long time! Look at ATR! Over the roof! If you ever decide to trade, you must reduce your position size dramatically now. Adjust it with ATR! GBP now trades worse than any EM ccys in any crisis before.
2. haDelta multi year extreme low on weekly was around -0,0415. It is now at -0,0926 !!!!! Same extreme value on daily haDelta, which reached -0,1145 today!!! This has never happened before. Obviously I don't say it is any kind of buy signal, I just say don't be surprised if we see some normalization, consolidation ard 1,31 or a maybe even a sudden spike to 1,3850.
Maybe best idea is not to touch it at all, until volatility is so high... or do some bottom fishing, preferably through options?
Two important things you have to pay attention to:
1. Volatility is extreme and it will stay elevated for long time! Look at ATR! Over the roof! If you ever decide to trade, you must reduce your position size dramatically now. Adjust it with ATR! GBP now trades worse than any EM ccys in any crisis before.
2. haDelta multi year extreme low on weekly was around -0,0415. It is now at -0,0926 !!!!! Same extreme value on daily haDelta, which reached -0,1145 today!!! This has never happened before. Obviously I don't say it is any kind of buy signal, I just say don't be surprised if we see some normalization, consolidation ard 1,31 or a maybe even a sudden spike to 1,3850.
Maybe best idea is not to touch it at all, until volatility is so high... or do some bottom fishing, preferably through options?
