GBP/NZD: Is Double Bottom Going to Play Its Part?

• GBP/NZD has had its second bounce at the last swing low on the H4 chart.
• The SMA 30 has been working as a resistance.
• The H1 chart looks bullish, may end up producing a double bottom.

GBP/NZD- Technical Analysis- H4 chart

The chart shows that the price after being bearish had a bounce at 2.01000. The price then made a move towards the North finding its resistance around 2.02485. The price reacted at this level earlier and acting as a flipped resistance. However, the price has found its support again at the last swing low as of writing. The buyers may wait for the price to make a breakout at the horizontal resistance, which will be considered as a neckline breakout. If that happens, it may create volatility and push the price towards the North. The price may find its next resistance around 2.06000.

On the contrary, if the price breaches the last swing low, it may find its next support around 2.98250.

Price Action Analysis- H1 Chart

The chart shows that the price has had its second bounce at the level of 2.01400. At the second bounce, it produced a Morning Star. Since then, it has been heading towards the North. As of writing, it trades around a resistance where the price had its last rejection. A breakout above the level may push the price towards the North. The price may find its next resistance around 2.03250.

On the contrary, if the resistance level keeps driving the price towards the South and ends up making a breakout at the level of 2.01400, the sellers may drive the price towards the South further. In that case, the price may find its next support around 1.99800.

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

Contact and follow Tareq on Twitter: @tareqfpn