GBPNZD Sets To Complete Bullish Zigzag Pattern

5 thg 10, 2020

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GBPNZD 4-hourly chart above reveals what can be seen as a five-wave impulse pattern, labeled (1)-(2)-(3)-(4)-(5). According to the EW theory, impulses show the direction of the larger trend and a three-wave correction follows every impulse pattern.

In GBPNZD's case, the correction unfolded a (w)-(x)-(y) double zigzag pattern. The pullback seems to have completed as it rejected a swing level, contained with a channel, and drop bullish price action signals.

According to Elliot Wave's theory, once a 5-3 (impulse-corrective) cycle is completed, the market should resume in the direction of the impulse which is bullish in GBPNZD case.

• The break of the green line will confirm that the bulls have takeover.
  
• The red line is the invalidation level for this setup.
  
• Targets above wave "a" high is plausible in the days ahead.
  

What's your view on GBPNZD? Let me know in the comment!

Thanks,
Veejahbee.