GBPCAD Bullish Sequence Analysis

GBPCAD Bullish Sequence Analysis

In this analysis, we will take a closer look at how GBPCAD has been advancing in a bullish sequence since late 2023. This currency pair has been following a diagonal pattern, with wave (4) of ((1)) completing on April 22, 2024. Following wave (4), wave (5) of ((1)) quickly rallied and completed its first leg, wave W.

Wave X Formation and Support

Wave X emerged from the high on April 30 to form a double zigzag structure. The crucial point to note is that the price found support at the equal leg of 1.7080 and bounced quickly, as expected. This support level was identified as crucial for wave X completion. The chart shared with members on May 14, 2024, showed the price separating from the equal leg with an impulse for (i).

Future Expectations and Trading Strategies

Looking ahead, we anticipate the price to breach the top of wave (i) and pave the way for wave (iii) of ((a)) of Y. This would potentially lead the pair to break the wave W high and commence wave Y. However, it is essential to consider alternatives. If the current dip for (ii) extends lower below X, we will need to identify a new extreme for wave X to look for new LONG positions.

Ideally, we would like to see the wave W high breached and then consider LONG positions after the next pullback completes 3, 7, or 11 swings in the extreme area. It is crucial to monitor the price action closely and be prepared to adjust trading strategies based on market movements.

The analysis of GBPCAD’s bullish sequence provides valuable insights into potential price movements and trading opportunities. By understanding the wave patterns and support levels, traders can make informed decisions and adapt to changing market conditions.

Technical Analysis

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