- GBP/CAD bears are taking up the reigns in an aggressive manner.
- Price melt down following BoE sees bears firmly in the money.
As per the prior analysis, GBP/CAD bears step-up up at 50% mean reversion area, the price did indeed melt to the downside.
Prior analysis
”Meanwhile, there is a prospect of a downside continuation as follows:
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The 50% mean reversion has been hit, but there are prospects of a deeper correction to test the 61.8% Fibo.
If that were to occur, the current resistance structure would turn to support and invalidate the immediate downside bias until new bearish structure is formed.”
Live market, price meltdown
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The Bank of England event was the catalyst and while news events are not ideal for trading, for they can go wither way and stops are not guaranteed, lowering the risk exposure is one way to deal with them in terms of swing trading.
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