GBP/CHF Hits 4 Year Resistance
December 18th, 2006 by Ian
After bouncing off three times the GBP/CHF pushes up to a level that it hasn’t been above since 2002. Coming back down? Propriety trader Mihai Nichisoiu has an interesting view:
It has been my belief since long that most volatility blowouts are triggered during periods of rather low market liquidity (i.e. they may be a result of liquidity gaps), and hence - contrary to the popular conception - these events may not be characteristic to a large-scale, public participation. Then, I think the ‘public’ participates only in the much later stages of a volatility blowout, upon a late acknowledgment of the event, and most times at awfully disadvantageous rates of reward / risk.
