The GBPNZD cross in its 4-hour chart shows an incomplete bullish impulsive sequence. In this post, we’ll review what is the most likely scenario for this cross.
Internal wave iv in progress
The GBPNZD is developing a rally which began on July 30, when the price found buyers at 1.82790. The structure could be classified as a 1-2-i-ii formation, in where its internal sequence still is in progress. The current wave corresponds to an incomplete wave (3).
From the GBPNZD 4-hour chart, we foresee an entry point opportunity if the price action drives to the cross to the area between 1.925 and 1.920. As you can remember, internal wave e mustn’t be lower than wave c. In this sense, the marginal retrace could provide a possibility for us to join the bullish trend.
The potential target of the internal sequence is among 1.95978 at 1.9783. The invalidation level for this scenario occurs if the price closes under 1.90856.