Interesting pattern on GBP/CAD points lower
|Hello traders!
GBPCAD can be trading in a big triangle correction, visible on the weekly time frame, however in this article we are going to show you only one part of it. On the daily chart of GBPCAD we see price making a bigger, three-wave decline, down from 1.805 level, which can be part of a wave D of a triangle. We see first leg A) as completed from the highs, and recent corrective, choppy, slow, and contracting price activity as a triangle pattern within a leg B). This minor triangle in wave B) can be near completion, as all five sub-waves are visible, therefore we should be aware of a new impulsive decline in days or weeks to follow. We want to see an impulsive break below the lower triangle line, which will confirm a completed corrective leg B), and leg C) impulse lower to be underway, ideally targeting the 1.61 area.
GBP/CAD, daily
A Triangle is a common 5-wave pattern labelled A-B-C-D-E that moves counter-trend and is corrective in nature. Triangles move within two channel lines drawn from waves A to E, and from waves B to D. A Triangle is either contracting or expanding depending on whether the channel lines are converging or expanding. Triangles are overlapping, five wave affairs that subdivide into a 3-3-3-3-3 form.
Triangles can occur in wave 4, wave B, wave X position or in some very rare cases also in a wave Y of a combination.
Symmetrical triangle in downtrend:
Black Friday SALE: 70% DISCOUNT on your first month of membership. Join us andget access to unique and daily technical content about the forex and crypto markets.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.