#GBPCAD bearish upcoming move
A clear 5-wave bearish impulsive move, followed by an ABC bullish correction, sets the stage for a potential bearish wave C or wave 3.
From a trading perspective, it’s not crucial whether the next wave is C or 3, as both scenarios indicate a likely bearish move. Additional confirmation comes from the bearish divergence between potential waves 3 and 5 in the current bullish leg (wave C).
To enter the trade, ensure you wait for a proper bearish breakout on a lower timeframe for confirmation.
Note
A key factor to remember when dealing with divergences is that price can remain in divergence and still continue its trend. This is exactly what’s happening with GBPCAD. And the reason I sat the sell trigger at lower high formation. Despite the clear bearish divergence and a noticeable loss in bullish momentum, the price has yet to shift its structure to the downside.
Until that happens, there's no point in trying to predict a top.
Note
It took longer than anticipated for GBPCAD to form a reversal but nevertheless, it happens.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.