80 Day Bounce in Pound vs New Zealand Dollar?

A new instrument I have added to my portfolio in the last few weeks is the British Pound against the New Zealand Dollar. After performing a phasing analysis in Sentient Trader the longer cycles are a little ambiguous. However there is certainly a trough of at least 80 day magnitude present which formed on January the 9th. Take a look at the chart below:


The cycles are clear here and showing a bullish bias. The 40 day trough according to the analysis above just touched the 20 day FLD. If the underlying trend was neutral the 40 day cycle low would be expected to break through the 20 day FLD and hit its target projection. In this case the touch and reverse gave early clues as to the underlying cyclic picture.

Price broke up in the nest of lows area yesterday, strongly. This is a highly probable place for the 80 day trough and I will be looking to go long on a break of the 10 day FLD. Price has broken the 10 day VTL, implying the 20 day trough has formed and, by the principle of synchronicity, the 80 day too. I would expect the recent high on February the 3rd to be broken to the upside. The 80 day cycle seems to be running a bit shorter than the Hurst nominal length which is 68.2 days. In this case the two most recent 80 day cycles are 52 days and 54 days respectively (assuming this bounce is the 80 day low).

More updates soon.

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