GBP/USD pair dipped to a low of 1.2791 in Asia; the lowest since June 1985. Cable sell-off triggered a wave of a risk-off trading, pushing treasury yields lower and Japanese Yen higher.
As of now, the pair is trading around 1.29 handle. There is very little logic in catching the falling knife. The volumes were very low in Asia and continue to be so. Hence staying on the sidelines appears as the best option.
Nevertheless, traders could keep an eye on the 4-hour chart. A bullish divergence could happen if the 4-hour candle sees a positive move and pulls the RSI above 30.00. In such a case, prices could head back to 1.3119-1.32 levels.
As of now, the pair is trading around 1.29 handle. There is very little logic in catching the falling knife. The volumes were very low in Asia and continue to be so. Hence staying on the sidelines appears as the best option.
Nevertheless, traders could keep an eye on the 4-hour chart. A bullish divergence could happen if the 4-hour candle sees a positive move and pulls the RSI above 30.00. In such a case, prices could head back to 1.3119-1.32 levels.
