Trading the cryptocurrency market can be a profitable venture for those who understand the market dynamics. One currency pair that has been showing bullish momentum is GBPCAD. In this article, we will analyze the recent price action of GBPCAD and discuss the potential future movements based on Elliott Wave analysis.
Since late 2023, GBPCAD has been following a bullish diagonal sequence, with wave (4) of ((1)) completing on 22nd April 2024 at 1.6888. After wave (4), wave (5) of ((1)) quickly rallied and completed its first leg, wave W. Wave X then emerged as a double zigzag structure, finding support at the 1.7080-to-1.7000 equal legs area, as predicted in our analysis.
In the latest update on 14th May 2024, wave X of (5) found support at the equal leg of 1.7080 and bounced quickly. The price action showed an impulse for (i), indicating a potential breakout above the current levels. Moving forward, we expect the price to breach the top of wave (i) and pave the way for wave (iii) of ((a)) of Y. This would set the stage for a further bullish momentum in the pair.
While the bullish scenario seems likely based on the current analysis, traders should always be prepared for alternative scenarios. If the current dip for (ii) extends lower below X, then a new extreme for wave X will need to be determined. This presents an opportunity for buyers to enter new long positions in anticipation of wave Y. Ideally, traders would want to see the wave W high breached before looking for long positions after a pullback completes the required number of swings in the extreme area.
GBPCAD has shown a strong bullish momentum, with potential for further upside movement based on Elliott Wave analysis. Traders should remain cautious of alternative scenarios and be prepared to adjust their trading strategies accordingly. By staying informed and following the market closely, traders can capitalize on the potential trading opportunities presented by GBPCAD.