The GBPCAD cross has reached 100% of equal legs from the bearish sequence that began on May 5. The bearish sequence dropped from 1.77239 until 1.6311. The structure is known as the AB=CD pattern. The price could start to bounce from this zone.
The GBPCAD 4-hour chart shows a potential AB=CD pattern. The structure suggests a likely bounce which could reach to the area between 1.68504 and 1.71874. But before pulling the trigger, we have to watch out the price action developed by the cross. Before going long with a better chance to succeed, we should wait for a breakout and close above 1.64235. In this scenario, the invalidation level is below the last swing at 1.63110.
Remember that the price is not forced to move as our outlook proposes. The charts released corresponds to an educational application of the Harmonic Trading Theory. Comments issued don’t represent an investment recommendation.