The GBPCAD chart above is actually coming from the weekly time frame but I zoomed out on the daily to see the details much better. We have an impulsive move to the upside, or a five wave structure that seems to be ended with a failure. In reality, it is not possible to be a failure, but it must be a five wave structure as it is wave c of a zigzag of a bigger degree. The thing is that this zigzag is not channeling and the consequences of it are that it should be followed by a sharp move lower and wave c of it to be completely retraced. And this brings to our trade today, staying short for 1.7780 with 1.8360. While the risk reward ratio is not that attractive, the time element there allows us to believe there will be little or no pushbacks, so the target should come fairly quick.