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