Veejahbee

ELLIOT WAVE: GBPNZD BEARS READY TO RESUMES A LONG-TERM DECLINE

Short
FX:GBPNZD   British Pound / New Zealand Dollar
Hi Traders,
The GBPNZD daily chart above revealed that the sell-off from the high at 2.0476 to the low at 1.8132 was an Elliot wave impulse structure, labelled 1-2-3-4-5. According to the theory, a three-wave correction in the opposite direction follows every impulse.
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The retracement after the impulse unfolded as a W-X-Y double three corrective structure with a simple zigzag in wave W & X, and double zigzag in wave Y. If this count is correct, the 5-3 wave cycle seems complete. The theory states that we can now expect the larger trend to resume in the direction of the impulsive sequence.
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Besides, wave (2) has already entered 78.6% Fibonacci levels, where second waves often terminate. Wave Y also equal wave W at the same level, typical relationship for a double zigzag . And last but not least, there is also a bearish rejection candle at the key resistance level .
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Wave (3) decline should easily move the prices below the low of wave (1) in the months ahead. A break below the blue ascending trendline will further confirm the bearish idea.
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Thanks for reading!
Veejahbee.

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