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.

Commento:

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!