GBP/CAD Price Analysis: Bears should stay in control beyond the next discount
|- GBP/CAD has moved lower, as expected, reaching the downside targets.
- Now there is scope for additional downside potential and shorts to be added.
Bears are well in control with the price breaking below support, as forecasted in the following analysis, here:
The following is as top-down analysis that illustrates how bears can still take advantage of the bearish envoirionment for a 1:2 risk to rewards setup.
Monthly chart
The monthly chart is bearish below resistance in a three-month series of distribution.
The wick that is eclipsed in the above chart, is expected to be filled in. The wick essentially represents the following weekly 3-wave price action:
Weekly chart
The price is in the process of wave-3 on the weekly chart and has the potential to extend to the downside and beyond prior support.
Daily chart
The daily chart shows that the price is below the resistance of the counter trendline and prior support.
This offers a bearish environment for bears to seek an optimal entry point.
4-hour 1:2 R/R setup
Bears can still take advantage of this market considering the price has broken below 24th/25th Sep support/lows.
The above is a continuation setup of prior analysis that enables additional shorts to the first daily structure and target.
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.