GBP/NZD Massive Bullish Wave 3 Seems Unstoppable

The GBP/NZD made a very strong breakout and bullish impulse above the 21 ema zone. The current consolidation pattern will probably be a base for multiple higher highs.

Price Charts and Technical Analysis

The GBP/NZD bullish momentum is strong. More than 20 candlesticks have not retraced back to the 21 ema zone (see green diamonds). This means that the impulse is probably a wave 3 (orange). And that any pullback is likely a wave 4. This is only invalidated if price retraces below the top of wave 1 (red x). In fact, multiple waves 3-4-5 could be remaining.

The next target is aiming at the 2.03-2.0325 zone. A bearish pullback could take place as the new high creates divergence. But a pullback is expected to retest the support zone (purple box) and use it for another bullish bounce and uptrend continuation.

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Good trading,

Chris Svorcik

The analysis has been done with the indicators and template from the SWAT method (simple wave analysis and trading). For more daily technical and wave analysis and updates, sign-up to our newsletter