- 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
-637382311925359222.png)
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
-637382303833161321.png)
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
-637382320822623370.png)
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
-637382317918767671.png)
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.
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