What did they talk about Black Wednesday, Mr Soros?

The head of Soros Fund Management, Scott Bessent (Bessent Capital), had said that: “Interestingly, no one had ever heard of George Soros before this. I remember going to play tennis with him at his London house on the Saturday after it happened. It was as if he was a rock star with cameramen and paparazzi waiting out frond”

As can be seen from the figure, the UK base rates had an extreme artificial increase on September 16th,1991. There was no plausible reason but the British Government attempted to create an artificial exchange rate. They thought that the 12% interest rate and a promise hiking up to 15% with the aim of making the pound more expensive to borrow. However, after the abnormal event, the interest rate became usual accomplished by the announcement to quit EMR.

Is this a W shape written by the Black Wednesday? It seems to be rarely W-shape technical analysis so far, perhaps there has been little number of similar events happen. Someone could wish that if he could go back in 1992, he would have earned more money than Mr George Soros. But actually, there was another chance for speculators during 1996 and 1997, when the exchange rate DeM/£ recovered and even more than 1992. What if George Soros could more certain about this? As a guess, the Bank of England and tax payers would be very happy that Soros did not do so. Indeed, after 1992, he attempted to perform some risky investment, and lose several million dollars consequently.
Reference: Stephen Drobny et al. (2009), Inside the house of money: top hedge fund traders in profiting in the Global Market.