Good day traders, and welcome to a new update regarding the GBPNZD and its intra-day structure. Let’s dig in!
On the hourly chart of GBPNZD we can see that price is unfolding a clear, impulsive probably five-wave structure, which we labelled as a higher degree wave C). If our analysis is correct, then we can see stronger pound in the next couple of trading sessions and possibly days. The reason why we think more upside may follow on the pair is a completed four-wave rally from the lows with the latest corrective leg from 1.9639 representing wave 4. Wave 4 is the fourth wave of an impulse, so if we have a completed wave 4 at the 1.936 support then current intra-day recovery can be final wave 5 in the making, which can take price even towards the 1.9760-1.9830 region. However, watch out for a bearish reversal, once wave 5 of C) fully shows up!
GBPNZD, 1h
