Elliott Wave Analysis: GBPUSD and USDCAD 

intraday usdcad jan 16

Gregor - Author BIO photoElliott Wave Analysis: GBPUSD and USDCAD

GBPUSD

Prime Minister Theresa May won endorsement from US President-elect Donald Trump over her Brexit course but sterling plunged on Monday on fears that Britain could be on a collision course with its EU allies based on media reports.

Technically speaking, on the GBPUSD we are observing a nice three wave move to the downside being made, with price now specifically trading in wave C). As we can see price seems to have unfold three sub-waves in this wave C), meaning only waves 4 and 5 are missing for a completion of this whole pattern. If that is the case, then a possible turning point higher could be around the corner, ideally around the 1.1924 level.

GBPUSD, 1H

intraday gbpusd jan 16

USDCAD

On the hourly chart of USDCAD we are looking at a new bounce higher taking place as part of a higher degree wave 2)/B). If that is the case, then recent bounce could be regarded as sub-wave A and current slow movement as sub-wave B. After wave B completes itself, a new impulse into wave C of 2) or B) is expected to follow. A new resistance zone and a probable reversal lower could later be seen around the former wave 4 at 1.3294 level.

USDCAD, 1H

intraday usdcad jan 16

 

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By Gregor Horvat

 

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