There is a long term bullish opportunity in the British Pound / New Zealand Dollar.
A clear 5 wave decline is evident in the GBPNZD from the 2000 top to the 2005 low. After 5 waves in one direction, a countertrend move occurs in 3 waves. From the 2005 low, waves A and B of what is probably a flat are complete. Wave C of the flat is expected to end above the wave A high of 3.0702.
The GBPNZD has formed a base from which to work higher. Ideally, price remains above 2.5726 on its way to a break above 3. On the 60 minute chart, the advance from 2.5726 looks like an impulse and the ensuing decline held at the 61.8% level.
Jamie Saettele writes Forex Technicals: The Day Ahead, Monday-Thursday (published at 6 pm EST), Daily Technicals every weekday morning (9 am EST), COT Analysis (published Monday mornings), and analysis of currency crosses throughout the week. He is also the author of Sentiment in the Forex Market.
Contact at jsaettele@dailyfx.com
