Hello traders and welcome to another ‘blue box’ blog post. In a blog post like this, we discuss most recent trade setups that the Elliottwave-Forecast members took. The spotlight will be on the GBPCAD again in this post.
In the last update on GBPCAD, we discussed a bullish trade setup from the blue box. The pair had just concluded a 3-swing pullback from the March 2025 high. Prior to that, at the top of the March 2024 high, price had just completed wave ((3)) within the clear bullish sequence from the low of September 2023. Thus, the path for ‘buy the dip’ came after price surged above the December 2024 wave ((1)) high after over five months of sideways/choppy price action. If you have been reading our previous posts, you’d know we like buying pullbacks with a bullish sequence. Likewise, in a bearish sequence, we like selling bounces. Pullbacks/bounces evolve in a 3, 7 or 11 swing structures.
When the market presented the opportunity to buy off the extreme of a 3-swing pullback for wave ((4)) on the 27th March 2025, we didn’t hesitate. Members went long as we showed in the last update. GBPCAD found support in the blue box and bounced to the risk free price. Our first target is what we call the RISK FREE PRICE. At this risk-free price, we like closing half our position in profit while leaving rest to breakeven. We like doing this conservative trade management approach because we understand the nature of the markets when correcting a trend-based sequence.
Corrections often complete a 3, 7 or 11 swing structure. When a 3-swing fails, 7 swing evolves. In a like manner, when a 7-swing fails, an 11-swing will evolves. In this example, the bounce from the blue box was corrective and the pair turned lower to evolve as a 7-swing deeper structure. Therefore, members closed the second half of their positions at breakeven and kept the profit on the first target. When the evolving 7-swing structure breached the 26th March 2025 low, we alerted members with another blue box on the H4 chart.
GBPCAD Trade Setup: 8th April, 2025
GBPCAD, H4
On 8th April 2024, we shared the chart above with members showing the blue box at 1.8204-1.7927. At the blue box, members went long and set stop at 1.7927. We expected price to finish a 7-swing structure for wave 4 with anticipation for more rallies in wave 5 of ((3)). Afterwards, wave ((4)) pullback will evolve with another buying opportunity. For this setup, we set the first target at 1.8305. At 1.8305, we anticipated to take partial profit and set the rest of the position to breakeven. The final target was set at 1.8970 where we like to close the rest of the position.
GBPCAD Trade Setup: 15th April, 2025
GBPCAD, H4
The chart above shows the current price action (the time of typing this) just a week after. After few candles in the box, the pair surged quickly to exceed the first target. Thus, members are running a risk-free trade right now after keeping some profits. Members will aim to close the rest of the position at 1.8974 where wave ((3)) could finish. The next setup will be the wave ((4)) pullback as the long-term bullish sequence remains incomplete. This is exactly how we like trading with our members.
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