Everyone is thinking GBPCAD is going down, be careful!

Everyone is thinking GBPCAD is going down, be careful!    Based on the chart pattern, everyone is bettering that the $GBPCAD currency for the spot forex market is going to go down.

Below is the daily chart from eSignal.   We are illustrating Elliott Wave along with Ichimoku.

2016-08-08_110147_gbpcad

The “natural” trend is bearish.    Based on Elliott Wave, the Wave 4 is finished which is the major pull back.   Now, Wave 5 is starting to proceed forward.    Based on Fibonacci and Elliott, everyone is illustrating that there is a high probability to retest the low.

However, this is not the case, there is a support at 1.7052 which is interfering with that probability.   Only when we break this support will we have a high probability of retesting the low.

Price so far is holding this support and consolidating around this value.     The more it consolidates, the more the bearish momentum is decreasing.     Only a couple of days remain for this support to be broken.   If not, the lower time frames will consolidate into a bullish sentiment.

 

 

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About the Author Manesh Patel