#GBPCAD bearish upcoming move

14 thg 10

A clear 5-wave bearish impulsive move, followed by an ABC bullish correction, sets the stage for a potential bearish wave C or wave 3.

From a trading perspective, it’s not crucial whether the next wave is C or 3, as both scenarios indicate a likely bearish move. Additional confirmation comes from the bearish divergence between potential waves 3 and 5 in the current bullish leg (wave C).

To enter the trade, ensure you wait for a proper bearish breakout on a lower timeframe for confirmation.

15 thg 10

Ghi chú

A key factor to remember when dealing with divergences is that price can remain in divergence and still continue its trend. This is exactly what’s happening with GBPCAD. And the reason I sat the sell trigger at lower high formation. Despite the clear bearish divergence and a noticeable loss in bullish momentum, the price has yet to shift its structure to the downside.

Until that happens, there's no point in trying to predict a top.

16 thg 10

Ghi chú

It took longer than anticipated for GBPCAD to form a reversal but nevertheless, it happens.