The markets continue to be characterized by US Dollar strength, decline in the Australian and New Zealand Dollars as well as Japanese Yen Currencies. This can be seen by the Trend/Wave/Extreme system as the Trend indicators are showing down trend in ( EURUSD/GBPUSD/AUDUSD/NZDUSD) up trend in (USDCHF/USDCAD) and up trend in (EURJPY/USDJPY). Therefroe any potential trades should follow these directions.
At the moment Buying EURGBP and Selling NZDUSD seem to be the best trades based on the Trend/Wave/Extreme system as the 1st one is a perfect buy (Uptrend in Oversold region) while the 2nd one is a perefct sell (Down Trend in Overbought region). Just make sure that 2 consecutive candles in the direction of the trend are formed prior to taking a trade.
Looking individually on some of these pairs we can observe the following trading opportunities going against the British Pound.
Selling the GBPUSD looks like a good opportunity as the Trend/Wave/Extreme system is pointing a down trend with an upward correction in an overbought region. From the looks of the chart this correction may be over and the drop will continue as the pair is under a falling trend which is currently been tested. If the line holds and two consecutive down candles are formed then it should be a good sell.
Here is what looks like a really good opportunity to catch a new trend and earn a significant number of pips by buying the EURGBP. The Trend/Wave/Extreme system is pointing Up, a down correctional wave and in a significantly oversold region. Hence this correction should be soon over.
And by the looks of the charts this couldn’t be clear. After being in a down trend for a long time an up trend has been formed now being obvious by the two consecutive higher peaks, and higher troughs. Furthermore it can be seen that the last wave which has been down should be over as an Up candle has been formed. Therefore we only need to see the next candle reach higher and then make the buy trade which could reach all the way to 0.8150.
Read about the Trend/Wave/Extreme system here.