Caution is warranted on any short position though, as the mid-term trend is still firmly on the side of sterling and a move toward 1.6250 is not out of the question.
Fear is on the rise and stocks are falling fast, but before heading for the sidelines, take a look at the market internals, which show that the mid-term trend is still bullish.
There have now been nine moves of 5%-10% in less than two to 10 days, so acting quick and obeying the short- and mid-term trend are the only ways to be safe and profitable.