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GBPNZD is reversing quite sharply to the downside. Price has overlapped the 2.27 level and also broke through the lower line of the base channel, which confirms that we are likely in a wave three selloff. If that is the case, then we know that wave three is usually the strongest part of the move and can unfold as part of a higher degree bearish impulse.With that in mind, more weakness can be expected. Impulses unfold in five waves, so after a possible wave four recovery, which may retest the base channel resistance line, the pair could see another push lower. That would represent wave five, potentially heading toward the 2.2130 area in 2026.
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