Elliott Wave Analysis: Silver Looking Lower, while GBPNZD In for More Gains!
Like gold, silver can also be trading at the start of a third leg to the downside, which can be labelled as wave C) of 3). Either way we believe more weakness may follow on metal, especially since we see a break below the lower corrective channel line, which is connected from 15.14 level. Also, the Fibonacci ratios of 61.8 and 78.6 turned out to be good at resistance.
GBPNZD and GBPJPY are both recovering from the lows, however price on GBPNZD can be trapped in a triangle correction as part of wave b. Triangles are continuation patterns which unfold prior to final waves, so be aware of a potential top, and resistance for the upcoming wave c near 1.957/1.965 region.
A later drop in impulsive fashion (five waves) would suggest a completed a-b-c correction, and more weakness.
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