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According to the GBP Pairs watchlist on MarketMilk™, all of the pound pairs had BIG moves yesterday. 🚀

At market close, all GBP pairs except for EUR/GBP  were up over 200 pips!

GBP/JPY was the clear winner with a gain of over 300 pips!!! 😲

GBP Pairs 10102019

Just how big were the moves that GBP made across different currencies?

To find out, we need to know GBP’s daily volatility.

Let’s take a look at how MarketMilk™ analyzed the volatility of all pound pairs within the GBP Pairs watchlist.

GBP Pairs Volatility 1D vs 12M

Take a look at the “AVERAGE” near the bottom of the image (grey horizontal bar).

Notice how the average daily volatility for GBP pairs over the past 12 months was about 124 pips versus yesterday’s volatility which was 319 pips!

This means that yesterday’s volatility was over 2.5x more volatile than usual!

That’s more volatile than a Kardashian haircut! 😂

If we look at specific currency pairs, over the last 12 months, GBP/NZD has been the most volatile pair moving about 174 pips per day.

But yesterday, GBP/NZD moved….415 pips! It was 2.4x as volatile than its 12-month average.

While GBP/NZD had the biggest movement, it wasn’t even the most volatile GBP pair!

That prize goes to GBP/JPY.

Its volatility yesterday was 383 pips vs. its 12-month daily average of 127 pips.

This means that GBP/JPY was THREE TIMES as volatile!  😱

If you had stop losses set that were 100 or even 200 pips wide, my condolences. 😬

If you were short GBP today, you probably had your face ripped off.

I can sympathize. I’m a hippo. I see hyenas rip the faces off antelope all the time in the safari.

Curious to know how yesterday’s volatility compared to other time frames aside from the last 12 months?

Here you go:

As you can see, the volatility was all pretty similar across time frames…and then yesterday happened!

Will this surge in volatility continue today and with moves over 200-300 pips? Or will it revert back to more “normal” levels which are around 150 pips?

We shall see. If you normally trade GBP pairs, make sure you’re aware of these current volatile market conditions and trade accordingly.

Speaking of trades, any good ones to look out for after such a large bullish move by GBP?

Let’s take a look at their long-term trends:

GBP Pairs Trend Strength 10102019

A lot of them are still bearish but seem to be weakening. But GBP/NZD and GBP/AUD are in strong bullish trends and look like good candidates to go long.

EUR/GBP also looks to be close to exiting its bullish trend and about to enter bearish territory. Might be worth a look to go short.