Everyone is thinking GBPCAD is going down, be careful! Based on the chart pattern, everyone is bettering that the $GBPCAD currency for the spot forex market is going to go down.
Below is the daily chart from eSignal. We are illustrating Elliott Wave along with Ichimoku.
The “natural” trend is bearish. Based on Elliott Wave, the Wave 4 is finished which is the major pull back. Now, Wave 5 is starting to proceed forward. Based on Fibonacci and Elliott, everyone is illustrating that there is a high probability to retest the low.
However, this is not the case, there is a support at 1.7052 which is interfering with that probability. Only when we break this support will we have a high probability of retesting the low.
Price so far is holding this support and consolidating around this value. The more it consolidates, the more the bearish momentum is decreasing. Only a couple of days remain for this support to be broken. If not, the lower time frames will consolidate into a bullish sentiment.
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