GBP/ZAR may fall 1950 - 2782 pips

23.59 is our pivot point.

Our preference

The downside prevails as long as 23.59 is resistance.

Alternative scenario

The upside breakout of 23.59, would call for 23.73 and 23.81.

Comment

The RSI is trading below 30. This could mean that either the pair is in a lasting downtrend or just oversold and that therefore a rebound could shape (look for bullish divergence in this case). The MACD is below its signal line and negative. The configuration is negative. Moreover, the price stands below its 20 and 50 period moving average (respectively at 23.56 and 23.53). Finally, the GBP/ZAR has penetrated its lower Bollinger band (23.43).

Supports and resistances

23.81 **

23.73 *

23.59 **

23.53

23.41 last

23.21

23.13 **

23.05 *

22.96 **

Number of asterisks represents the strength of support and resistance levels.