GBP/NOK may rise 514 - 764 pips

Our pivot point is at 13.7880.

Our preference

The upside prevails as long as 13.7880 is support.

Alternative scenario

The downside breakout of 13.7880 would call for 13.7450 and 13.7200.

Comment

The RSI is trading above 70. This could mean that either the pair is in a lasting uptrend or just overbought and that therefore a correction could shape (look for bearish divergence in this case). The MACD is above its signal line and positive. The configuration is positive. Moreover, the price is trading above both its 20 and 50 period moving average (respectively at 13.7731 and 13.7503). Finally, the GBP/NOK has crossed above its upper Bollinger band (13.8217).

Supports and resistances

13.9590 **

13.9340 *

13.9080 **

13.8830

13.8316 last

13.8040

13.7880 **

13.7450 *

13.7200 **

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