Yesterday there are some strange movements on GBP/USD. On exactly 6:56 GMT, GU spikes down tremendously. After that it spikes up a lot, then move down again. All that happens in a short time.
As you could see in the chart, there is one big long candle (including the wig) at that hour. I thought its some gradual movement, but zoom in to minute chart, review that it all happens within 2 minutes.
Yes viewing on the minute chart, it’s clear that its all happens within 2 minutes. A massive 120 pips within 2 minutes! I eager to find out what’s happening, but my efforts are in vain. After hours of research, there is only one website that explains this. (http://community.nasdaq.com/news/2010-07/forex-gbpusd-spikes-down-120-pips-to-15185.aspx?storyid=29319)
According to the site, “Pound's recovery from 1.5150 low on Tuesday has been cut abruptly at 1.5320, and the pair has spiked down about 120 pips in a matter of minutes, allegedly, due to a large sell order by a Dutch bank, to print a fresh session low at 1.5185.”. Up to now I have no idea what is happening, but this clearly shows me the power of ‘big money’.
Anyone knows what’s happening feel free to post your comments or mail me. Thanks.
