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GBPNZD – An Example of the Relationship Between Price and Time


This week the oceanic cross GBPNZD gains 0.78%. The bullish movement makes us expect fresh highs for the following trading sessions.

The relationship between price and time

The GBPNZD 2-hour chart shows an example of the relationship between price and time. In simple words, a motive wave is characterized by performing a movement of a defined range in a shorter time than the previous one. In the following chart, we observe the range between 1.86660 and 1.83687. In the first part, the decline took six days and 22 hours; while in the second part, the same extension was reached in 1 day and 22 hours.

What’s next?

After the first impulse completion, we expect a corrective move before seeing new highs. The retracement on three waves could be between 1.8554 and 1.8483. We foresee the target zone amid 1.8820 and 1.8901. Consider that the depth of the correction will indicate the strength of the trend and the potential extension of the second impulse. The invalidation level for the bullish scenario is at 1.83687.

Remember that the price is not forced to move as our outlook proposes. The charts released corresponds to an educational application of the Elliott Wave Theory. Comments issued don’t represent an investment recommendation.


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