✈️? GBP/CAD Very Close to Confirm Bullish Wave 5 ?✈️

3 min read
Adarwish

adarwish

Author

Hi traders,

GBP/CAD pair is in an uptrend but it made a deep bearish correction during the last 3 weeks… The pullback seems to be part of wave 4.

We will review different scenarios as the pair can either continue the bearish corrective pullback or bounce for a new bullish momentum and start a wave 5.

This article will discuss the wave perceptive and expected scenarios for the pair during the coming days using wave pattern, support and resistance, and SWAT software.

GBP/CAD Bounced From 38.2 % Fibonacci Level

As shown in the below chart, the pair is moving in a strong uptrend and has made a deep correction as part of wave 4… The pair is now bounced from 38.2% Fibonacci level which can be the end of wave 4 and the start of new bullish wave 5 … Here are the main conclusions:

  1. Typical Fib Count of Wave 4 is 38.2 %, 50 % and sometimes 61.8% of wave 3.
  2. Price now can be in a bouncing spot but also can expand the correction to 61.8% Fibonacci level.

So I expect that there is one more higher high to achieve wave 5 targets so we will wait for buy signals to appear… I will skip any sell opportunities as it does not match the expected wave pattern.

 

GBP/CAD SWAT CHART

Now its time to use the SWAT 4-hour chart to determine the entry points according to the expected wave patterns… SWAT Chart indicates a bearish momentum and needs some developments to confirm the bullish wave…  Here are the main developments to consider:

  1. Need a strong bullish candle to close above the 21EMA and 144EMA.
  2. The price created a pull flag and  very close to break it.
  3. The expected targets are Wizz level 4, 5 and 6.

So in my view, traders should wait for the confirmation before trading this pair. That is what I will be doing in any case.

Good trading,

Ahmed
Ahmed twitter

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