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.

Ross J Burland FXStreet

Bears are well in control with the price breaking below support, as forecasted in the following analysis, here:

GBP/CAD Price Analysis: Bears waiting for break of key support

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.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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