The GBP that has been falling was able to make some gains today following the Bank of England Monetary Policy Minutes. This rise may provide some good selling opportunities.
After scanning the market on the GBP using Trend/Wave/Extreme system here is what we get.
It is a bit of a mixed picture regarding against which currencies the GBP is dropping and against which is gaining. We want to sell GBP against currencies were GBP is overbought and downtrending (GBPAUD,GBPCAD,GBPCHF) . GBPUSD is also an option but the pair is not overbought yet. GBPJPY could also be a potential Sell despite the slight uptrend as it is highly overbought. For will play it safe and look at only the GBPAUD and wait for the other pairs to develop a better picture.
GBPAUD (H4) SELL
The Trend/Wave/Extreme mini indicator is showing us
- The Trend Bar is Red filled pointing Down Trend
- Wave and Extreme Bars are Up Overbought pointing an up correction that may be ending
- A very solid down trend line.
- The correction so far has been 140 pips making this a potentially very lucrative trade.
Note*: If you are planning on selling this pair wait for two consecutive down candles. Correction may not be over yet and there are enough pips to sacrifice to better confirm this trade.
Read about the Trend/Wave/Extreme system here