The indicator signals an upward zigzag pattern.
On the EUR/USD pair, the downtrend is still in place according to the technical picture. But a pullback may start at any moment. The breakout of the 1.2078 level will cancel the downtrend. In this case, the nearest target will be at 1.1990 or even at 1.1950. I’m still waiting for the formation of an upside zigzag pattern.
As soon as it is formed and the downtrend persists, I will open sell deals. So, let’s wait for the zigzag pattern.
The situation on GBP/USD is similar to the one with EURUSD. The downward movement continues and we wait for the upside zigzag pattern. I will open short positions on the pair as soon as the zigzag is formed and the downtrend remains in place.
On the pound, the breakout of the 1.3976 level will cancel the downtrend, while the level of 1.3750 remains an area that has not been tested yet.
A few words about the indicator.
Today, the indicator signals that we need to wait for an upside zigzag pattern. If it is not generated, then the blue dot will become the point of reversal. We should consider this fact but be patient at the same time.
Sometimes, in this case, positions are closed only the next day. The main thing is that the price should sooner or later return to the blue zone. Then, you should decide for yourself how to use this information. It’s up to you what to do next.