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 n eed 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 al