According to the theory, a three-wave correction follows every impulse. This means the overlapping price action we saw in the last three years is hardly the start of a new uptrend. Instead, it is most likely a complex W-X-Y-X-Z triple three correction within the larger downtrend from 2015 high @ 2.5344.
Note how the discouraged the bulls in wave Z and also made a . This is another indication that the entire 5-3 wave cycle is complete. If this count is correct, we can expect the trend to resume in the direction of the impulsive sequence.
Furthermore, the sell-off is supposed to breach 2016 low, so targets below 1.67004 make sense for GBPNZD going forward.
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