The drop in the £ after the UK voted to leave the EU has continued in the subsequent ten days and so has the rise in the Yen in its odd new status as a 'flight currency'. These moves are now over-done as measured by the extension signals that we are seeing. A sample:
Brave hearts may wish to take a long position in the £ against any one of these candidates - the $, Yen or Swiss and even against the Euro, which is not shown here.
Alternatively, there is a trade that may not be quite as risky as trying to catch the falling knife that is the £. The bottom right chart shows that $/Yen has also fallen and has also extended recently. Unlike the various £ pairs however, this $/Yen pair didn't make a new low in the last few days which is a sign of some emerging stability. We would Buy the $/Sell the Yen as an alternative (or as a complement to) buying the £.