Singapore Forex - How we made money from GBP flash crash 2016


Woke up last Friday morning, 7 October 2016 to this headline:


Pound news dominate the headlines
Pound news dominate the headlines

What happened to GBP? – Fat Finger or Flash Crash?

The fall of GBP might be a shocker for most traders and probably encounter margin calls and/or freeze screens. However, some traders might find this incident and its movement is somewhat similar to SNB Flash Crash.

Previously we think that the market is behaving illogically because after the Brexit, the GBP should drop but instead it was being held up.

GBPUSD POST BREXIT
GBPUSD POST BREXIT

Due to the sideways price movement, we suspect that there was a possibility of shorts accumulation during the 1.5 months after Brexit. It feels like the market was just waiting for SOMETHING to happen.


What we really think

Once the market had accumulated a considerably huge volume of shorts together with the tremendous pressure for Brexit (again) and low liquidity in the market - after US session, the GBP crash seemed inevitable.

During the 900 pips down movement, GBP long traders could also face slippages in their account. Stop loss levels were not triggered but was flushed out instead due to the low liquidity in the market.


Our Verdict

The plunge wasn’t trigger by any news, unlike SNBomb and GBP plunge across the board (all GBP crosses), so it is very likely that we had witnessed a flash crash in GBP itself.


What if these big move is already expected in "The Alien Room"

However what if I told you that the big move was already ‘predicted’ in “The Alien Room” 1 week ago? The Aliens aren’t surprise by the huge movement in GBP crosses because we were expecting at least 700 pips movement in GBPCAD and 600 pips movement in GBPAUD using the Tflow® method. *smiles*


See what Binni said in The Alien Room about GBP before flash crash


GBPCAD short profited 475 pips

The Alien Room posting - GBPCAD on 23 Sept 2016
The Alien Room posting - GBPCAD on 23 Sept 2016

The Alien Room private post - filled at 1.708 and crashed to 1.66 target profit
The Alien Room private post - filled at 1.708 and crashed to 1.66 target profit

GBPAUD short profited 600 pips

The Alien Room posting - GBPAUD 04 Oct 16
The Alien Room posting - GBPAUD 04 Oct 16

The Alien Room private posting on 04 Oct - price filled and plunge 600 pips to 1.61
The Alien Room private posting on 04 Oct - price filled and plunge 600 pips to 1.61

The Aliens are making monster pips in GBP trade




Learn, Follow, Empower. Take Master Forex Course and get 6 months free The Alien Room access here.

Join us in The Alien Room for as low as SGD48 per month with an annual plan (Tflow® students) here.


Parity in GBP? Insane yet potential levels in GBPUSD and GBPSGD

 

Coincidentally, local paper Shin Min Daily interviewed Chief Trainer Binni Ong on 04 October. Binni believes that if GBPUSD could not maintain 1.28, it could go to parity or even 0.95.  In addition, she observes that there are no signs of rebound in the GBPSGD. 1.7 is a technical support which broken could lead to more GBP losses.

 

This flash crash of GBP could be one of the worrying signs of instability, and this is not the first time we have seen in the market. Read here for past events

What do you think?




To your trading success,

binni ong signature


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