GBP/NZD: Does the Confluence Support Hold the Price and Make it Bullish?

• GBP/NZD looks a bit choppy on the H4 chart but it trades around a significant support.
• The pair may make a good move towards the North on the H4 chart.
• The H1 chart may end up producing a double bottom.
• Intraday minor charts have been choppy.

GBP/NZD- Technical Analysis-H4 Chart

The chart shows that the price has been consolidating at a significant support. It may be considered as a confluence level since a horizontal level of support and the simple moving average 30’s support are holding the price simultaneously. A bullish reversal candle around this zone may attract the buyers to go long. They may push the price towards the North and make a new higher high. The price may find its next resistance around 2.07300.

On the downside, if the price breaches the support, it may generate good bearish momentum. The sellers may keep their eyes on the pair to go short upon having bearish reversal pattern around the breakout level. The price may find its support at the last swing low. A breakout below that level may drive the price towards 2.12000.

Price Action Analysis- H1 Chart

The chart shows that the pair has had several bounces at 2.04100. The level may play a vital role to determine the next direction. A bullish candle at the level may attract the buyers to go long and push the price towards the upside. The price may find its next resistance around 2.05700.

However, if the price breaches 2.04100, the sellers may wait for the price to confirm the breakout followed by a bearish reversal pattern to go short in the pair. In that case, the price may head towards the South and find its support again around 2.03000.

The H4 chart favours the buyers. The H1 chart still looks good for the buyers as long as the support holds the price. However, a bearish breakout on the H1 chart may change the scenario.

Written by: Md Tareq Sikder, Senior Analyst Forex Prop News

Contact and follow Tareq on Twitter: @tareqfpn