USD British Pound: What's the next trend?
After the recent selloff, this currency pair seems to be moving in the north direction with lot of strength. Whenever, such sideways to positive movements happen after significant fall, one need to understand that the asset class is making a basing formation for the next leg.
In the below daily chart of US Dollar British Pound, we have also used ADX to measure the trend for this pair along with that we have shown Elliott Wave Counts.
We can observe from the chart is, prices were moving precisely in a downward sloping red channel, but there was a bullish breakout in falling channel formation in the month of March 2014 which opens positive possibilities. After that prices came down and took the support of the trend line and have managed to bounce back.
Trading in the direction of a strong trend reduces risk and increases profit potential. The average directional index (ADX) is used to determine when price is trending strongly. In many cases, it is the ultimate trend indicator. After all, the trend may be your friend, but it sure helps to know who your friends are.
In this pair the downtrend has started to cool off which clearly indicates that the momentum on downside is slowing down. However, there is still no such confirmation that the uptrend is strong. We are monitoring this pair very closely for a strong trend to emerge.
As per wave perspective, prices have completed wave …….in double correction pattern after completing wave …….of one higher degree. Currently it is moving up in the form of next leg on upside.
In the below daily chart of US Dollar British Pound, we have also used ADX to measure the trend for this pair along with that we have shown Elliott Wave Counts.
We can observe from the chart is, prices were moving precisely in a downward sloping red channel, but there was a bullish breakout in falling channel formation in the month of March 2014 which opens positive possibilities. After that prices came down and took the support of the trend line and have managed to bounce back.
Trading in the direction of a strong trend reduces risk and increases profit potential. The average directional index (ADX) is used to determine when price is trending strongly. In many cases, it is the ultimate trend indicator. After all, the trend may be your friend, but it sure helps to know who your friends are.
In this pair the downtrend has started to cool off which clearly indicates that the momentum on downside is slowing down. However, there is still no such confirmation that the uptrend is strong. We are monitoring this pair very closely for a strong trend to emerge.
As per wave perspective, prices have completed wave …….in double correction pattern after completing wave …….of one higher degree. Currently it is moving up in the form of next leg on upside.
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