GBPCAD Wave Analysis 22 October, 2020

• GBPCAD reversed from resistance level 1.7240

• Likely to fall to 1.7075

GBPCAD today reversed down from the powerful resistance level 1.7240 (former strong support from the middle of August) – intersecting with the upper daily Bollinger band and the 50% Fibonacci correction of the downward correction 2 from July.

The downward reversal from the resistance level 1.7240 stopped the previous short-term impulse wave (iii).

Given the clear bearish divergence on the daily Stochastic indicator – GBPCAD is likely to fall further toward the next support level 1.7075.