EW ANALYSIS: GBPCAD Has Just Started A Three-Wave Correction
Hello traders!
We see quite clear and interesting pattern on GBPCAD.
Looking at the daily chart, we can see a clear A-B-C corrective structure with a triangle in wave B, especially after that sharp and impulsive decline and this is the first reason why we are bearish.
Looking at the hourly chart, we can see a five-wave drop away from that C at 1.7500 level, which confirms more weakness, but after a three-wave a-b-c corrective recovery, ideally back to a previous wave »ii« resistance area around 50% - 61,8% Fibonacci retracement and between 1.7080 – 1.7150 levels, maybe even 1.7200.
In case if goes even higher or more complex, we remain bearish as long as it's trading below 1.7500 highs!
Disclosure: Please be informed that information we provide is NOT a trading recommendation or investment advice. All of our work is for educational purposes only.
We see quite clear and interesting pattern on GBPCAD.
Looking at the daily chart, we can see a clear A-B-C corrective structure with a triangle in wave B, especially after that sharp and impulsive decline and this is the first reason why we are bearish.
Looking at the hourly chart, we can see a five-wave drop away from that C at 1.7500 level, which confirms more weakness, but after a three-wave a-b-c corrective recovery, ideally back to a previous wave »ii« resistance area around 50% - 61,8% Fibonacci retracement and between 1.7080 – 1.7150 levels, maybe even 1.7200.
In case if goes even higher or more complex, we remain bearish as long as it's trading below 1.7500 highs!
Disclosure: Please be informed that information we provide is NOT a trading recommendation or investment advice. All of our work is for educational purposes only.
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UPDATE: Perfect follow-up! As expected, after that clear three-wave a-b-c correction and sharp turn from projected resistance area, we can expect more weakness within a new five-wave bearish cycle for wave 3!
