#GBPCAD bearish upcoming move
A clear 5-wave bearish impulsive move, followed by an ABC bullish correction, sets the stage for a potential bearish wave C or wave 3.
From a trading perspective, it’s not crucial whether the next wave is C or 3, as both scenarios indicate a likely bearish move. Additional confirmation comes from the bearish divergence between potential waves 3 and 5 in the current bullish leg (wave C).
To enter the trade, ensure you wait for a proper bearish breakout on a lower timeframe for confirmation.
Uwaga
A key factor to remember when dealing with divergences is that price can remain in divergence and still continue its trend. This is exactly what’s happening with GBPCAD. And the reason I sat the sell trigger at lower high formation. Despite the clear bearish divergence and a noticeable loss in bullish momentum, the price has yet to shift its structure to the downside.
Until that happens, there's no point in trying to predict a top.
Uwaga
It took longer than anticipated for GBPCAD to form a reversal but nevertheless, it happens.
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