In this technical blog we’re going to take a quick look at the past Elliott Wave charts of GBPNZD published in members area of the website. As our members know, we have been calling for the recovery in the pair since the cycle from the April peak ended at 1.8889 low. In further text we’re going to take a look at the price charts , explain the past forecast and Elliott Wave pattern.
Before we take a look at the real market example, let’s explain Elliott Wave ZIGZAG pattern in a few words.
Elliott Wave ZIG ZAG is the most popular corrective pattern in Elliott Wave theory . It’s made of 3 swings which have 5-3-5 inner structure. Inner swings are labeled as A,B,C where A =5 waves, B=3 waves and C=5 waves. That means A and C can be either impulsive waves or diagonals (Leading Diagonal in case of wave A or Ending in case of wave C) . Waves A and C must meet all conditions of being 5 wave structure, such as: having RSI divergency between wave subdivisions, ideal Fibonacci extensions and ideal retracements.
At the graphic below, we can see what Elliott Wave Zig Zag structure looks like. 5 waves down in A, 3 wave bounce in B and another 5 waves down in C.
GBPNZD 1 Hour Elliott Wave Analysis 6.13.2018
The pair has ended cycle from the 04/26 peak down at 1.8889 low. Currently the pair is doing short term pull back against that level.Pull back seems to be unfolding as ((a))((b))((c)) ZIGZAG pattern. We can see clear 5 waves down from the W red peak, assuming that was the first leg ((a)) of ZIGZAG. As far as the price stays below ((b)) high, we see possibility of another leg lower that should also unfold as 5 waves structure. Proposed leg down should reach 1.8930 area which is ((c))=((a)) zone. At that area buyers should appear for further rally or 3 wave bounce alternatively. it’s very important price to hold above 1.88895 low Otherwise break below that level would invalidate current count and open further extension to the downside.
GBPNZD 1 Hour Elliott Wave Analysis 6.15.2018
The pair has made proposed leg down. As soon as the price has reached equal legs ((c))=((a)) at 1.8930 , buyers appeared. We got nice reaction from the reversal zone. Now as far as the price stays above 1.8922 low and 1.88914 pivot holds we expect further strength in the pair. Next short term technical area to the upside comes at 1.9172-1.9231.
Note: Keep in mind not every chart is Trading Signal. Best instruments to trade are those having incomplete bullish or bearish swings sequences. We put them in Sequence Report and best among them are shown in the Live Trading Room.
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