The GBPNZD cross, in its hourly chart, shows the advance in a wave B of Minor degree labeled in green. From the upward sequence, we observe that the bullish corresponding to wave ((c)) of Minute degree identified in black, remains in progress.
The current non-directional movement suggests the possibility of a new limited retrace, which could reach the level 2.0803, from where the price could give us the opportunity of new bullish incorporation following the upward bias of wave ((c)).
A bullish position will activate if the price retraces and closes above 2.08035. Our potential target locates at 2.10615 from where the wave B could complete its three-wave structure.
The level that invalidates our upward scenario locates at 2.07078.
Trading Plan Summary
- Entry Level: 2.08035
- Protective Stop: 2.07078
- Profit Target: 2.10615
- Risk/Reward Ratio: 2.7 to 1
- Position Size: 0.01 lot per $1,000 in account.