GBP/NZD developed a bearish momentum this week… It seems that this price action was developing a bearish 12345 wave pattern and I think that price is now developing a wave 4 correction. At the moment we are waiting for the confirmations of wave 5.
We will review different scenarios as the pair can either bounce for bearish wave 5 or expand the bullish momentum of wave 4.
This article will discuss the wave perceptive and expected scenarios for the pair during the coming days using wave pattern, support, and resistance and SWAT software.
The below chart shows that the pair developed a decent bullish correction … In my view, the pair was developing a wave 4 pattern and now we are waiting for the confirmation of bearish wave 5 to start.
And here are the main conclusions:
For the moment I expect one more lower low presenting bearish wave 5 but… Traders need to wait for the confirmations of wave 5 to take place before trading this pair… In the next paragraph, we will discuss this development by using SWAT software.
Now it’s time to use the SWAT 1-hour chart to determine the entry points according to the expected wave patterns… SWAT Chart shows bearish momentum with some decent bullish correction but some developments to confirm the setup… Here are the main developments to consider:
So in my view, traders should wait for the confirmation before trading this pair and look for short opportunities only as it matches the expected wave.
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