The GBPNZD above revealed that the sell-off from the high at 2.0476 to the low at 1.8132 was an impulse structure, labelled 1-2-3-4-5. According to the theory, a three-wave correction in the opposite direction follows every impulse.
The retracement after the impulse unfolded as a W-X-Y double three corrective structure with a simple in wave W & X, and double 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.
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 . And last but not least, there is also a rejection candle at the key .
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 idea.
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