? GBP/CAD Waiting for Bullish Continuation of Wave 5 ?

3 min read
Adarwish

adarwish

Author

Hi traders,

GBP/CAD pair is in a strong uptrend but it remains to be seen whether the bearish correction is indeed completed or not. We will review different scenarios as the pair can either bounce for an uptrend continuation or expand the bearish correction within wave 4.

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 Daily  Wave Pattern

As shown in the below chart, the pair is moving in a strong uptrend and has made a decent correction as part of wave 4… The pair is now at the 23.6 % Fib level.

The currency pair could make a bounce at this shallow retracement level but it can also expand the correction till the 38.2%, 50% or 61.8 % Fibonacci levels.

From my point of view, I would only want to trade the uptrend… but some more confirmation is needed before I can trade this pair, which will be discussed in the next paragraph by using the SWAT software.

GBP/CAD 4 Hours SWAT CHART

Now its time to use SWAT 4 hours chart to determine the entry points according to the expected wave patterns… Here are the main conclusions to take care of:

  • The price developed a falling wedge chart pattern.
  • Price needs to break above 21 EMA.
  • The breakout candle needs to show a strong 4 hour candle break.
  • We need the oscillator to create a bullish divergence.
  • Also, the price must remain above the 144 EMA.

From my point of view, those are the main conclusions that traders must await before trading this pair. Our target is the previous high and the Fibonacci targets as we are aiming for wave 5.

Good trading,

Ahmed
https://twitter.com/Adarwiah2001

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