Eyes on the UK Sterling(05/08/2014)

Today we are looking at two potential trades involving the GBP. The GBP is a currency that has been falling and we can take opportunitiy of the up correction it showed over the past couple of days.

 EURGBP (4 Hour) BUY

Looking at the Trend/Wave/Extreme mini indicator I received an alert about a potential BUY trade at the EURGBP pairEURGBP 20140805

The  Trend/Wave/Extreme mini view indicator is showing us

  • Trend bar is Up Green filled pointing Up Trend
  • Extremes bar is Down Red filled pointing the pair is oversold
  • A solid up trend line chart pattern
  • We can allready see two consecutive bullish candles

It appears that an uptrend finished a down correction and should resume its up movement

GBPUSD (4 HOUR) SELL

GBPUSD is a pair that has been dropping non-stop and has significantly retraced over the past couple of days.

GBPUSD 20140805

The  Trend/Wave/Extreme mini view indicator is showing us

  • Trend bar is Down Red filled pointing DownTrend
  • Extremes bar is Up Green filled pointing the pair is oversold
  • A solid down trend line chart pattern

*Note: Candles have not yet confirmed the upcorrection is over so we may see further up correction before the pair starts dropping.

*Note: Be aware of the UK Services PMI news that are due to be anounced today that could significantly affect both of the above trades.

Read about the Trend/Wave/Extreme system here

The following is an analysis of the currency markets using the Trend/Wave/Extreme system . You can read about the system here. Please read our Risk Disclosure and Terms of Use  prior to making a trade using this information.