GBP / CAD: significant bearish opportunity on the table

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There's a bearish 'Wolfe Wave' pattern on the twelve-hour chart. As you can see, the 1-3 line acted as resistance, and that could be the beginning of wave 6. Moreover, we've got a pullback from the 0.5 retracement of the previous decline, which provides more evidence for the bearish outlook. In this case, we're likely at the early stages of a massive decline.

The main target here is the 0.618 multiple of the last decline at 1.6405, which is nearby the 1-4 line. However, first of all, we should watch line 2-4 as the nearest target because only if the price goes through this line, there'll be a green light for achievement of the 0.618 level.

Keep in mind, that if the outlook is right, the market should begin declining pretty soon. If we have a new local high instead, this scenario will be at risk. In other words, if the pair fixates above the 0.5 retracement, bulls will lead, at least for a while.

The material has been provided by InstaForex Company - www.instaforex.com