close icon

GBPNZD Aiming at 1.8000. Here is the Reason

GBPNZD almost reached 1.8000 a month ago, but the bulls ran out of fuel a fraction of a pip lower. Then the bears took the torch to drag the pair as low as 1.7212 as of today. However, instead of selling after e decline of almost 590 pips, we believe the buyers are ready for another attempt to conquer 1.8000. And this time chances are it is going to be a successful one. The chart below explains why.
gbpnzd 4h 12.1.17
According to the Elliott Wave Principle, we can identify the direction of the larger sequence by simply spotting a five-wave impulse on a chart. It looks like that GBPNZD rose in impulsive manner between 1.6704 and 1.7844. But every impulse is followed by a three-wave correction before the trend resumes. And that is where things usually get complicated, because identifying the exact type of the retracement can often be tricky. In this case, GBPNZD seems to have drawn a confusing type of flat correction, because its wave B looks like a triangle. Nevertheless, it is still just a three-wave pattern, which, once over, should give the start of the next positive phase – wave C up. Furthermore, the relative strength index shows a bullish divergence between waves 3 and 5 of (c) of B – another sign that the bears might be ready to give up. Of course, it is never a good idea to try picking bottoms. The better approach would be to wait for the top of wave 4 of (c) of B to be taken out before joining the bulls, because such a breakout will not only serve as a confirmation of the bullish reversal, but it will also provide a concrete stop-loss level right below the bottom of wave 5 of (c) of B. Until then, GBPNZD might continue to decline, but as long as 1.6704 holds, the bulls’ ambitions should not be underestimated.

Stay informed with our newsletter

Latest Elliott Wave analysis on different topics delivered to you weekly.

Privacy policy
You may also like:

USDJPY Gains 450 Pips and Counting in Two Months

2020 wasn’t a good year for USDJPY bulls. Starting from 108.63 in January, the pair closed at 103.32 on December 31st, down 4.9% in twelve months. But what the dollar lost against the yen in the entire 2020 it is now close to recouping in less than three months. USDJPY is approaching 108.50 as of…

Read More »

USDTRY Drop Accelerates as Elliott Wave Predicted

The Turkish Lira hit its highest level against the U.S. dollar in six months. The country economic and legal reforms announced last year coupled with tighter monetary policy appear to be giving the desired effect. USDTRY is down 19.3% from its November 2020 high after being in an uptrend since mid-2008. Most analyst, however, are…

Read More »

EURUSD Surges 570 Pips After Fibonacci Encounter

EURUSD is trading at levels last seen in April 2018, when it was on its way down to 1.0636 by March 2020. The pair is now approaching 1.2200, up 14.5% since the COVID-19 selloff nine months ago. But trends don’t move in a straight line. Two months ago, we showed you how Elliott Wave analysis…

Read More »

USDTRY Heads South After Central Bank Decision

Turkey finally took a decisive step towards taming the double-digit inflation, which has been destroying the Lira’s value for years. The country’s central bank lifted the benchmark interest rate to 15%, up 475 basis points from its previous standing. USDTRY fell as low as 7.5031 earlier today, on track for a second consecutive week of…

Read More »

GBPNZD Can Slide to Sub-1.9000 In Coming Weeks

What will EURUSD, USDJPY and USDCAD bring next week? That is the subject of discussion in our next premium analyses due out on Sunday! GBPNZD exceeded 2.0270 in mid-August, but the bulls could not keep the positive momentum. A month later, the pair fell to 1.9055, losing 6% in the process. And just when it…

Read More »

Ahead of EURUSD ‘s 280-pip Drop in September

EURUSD had been on a tear since mid-March when it bottomed out at 1.0636. Nearly six months later, on the first day of September, the pair exceeded the 1.2000 mark. The bulls seemed firmly in control and the Fed’s money printing suggested further losses ahead for the dollar. However, years of experience had taught us…

Read More »

Ahead of GBPUSD in Both Directions. Now What?

GBPUSD had a good run over the past six months, climbing from its 1.1412 March low to as high as 1.3483 last week. The pair is now back below 1.3000 after the latest portion of Brexit-related mess. Later in this article we will share our view of where the Pound is headed against the dollar,…

Read More »

More analyses