GBP/ZAR may rise 1075 - 1525 pips

Our pivot point stands at 23.03.

Our preference

The upside prevails as long as 23.03 is support.

Alternative scenario

The downside breakout of 23.03 would call for 22.95 and 22.90.

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 positive and above its signal line. The configuration is positive. Moreover, the price is trading above both its 20 and 50 period moving average (respectively at 23.01 and 23.01).

Supports and resistances

23.38 **

23.33 *

23.29 **

23.24

23.14 last

23.05

23.03 **

22.95 *

22.90 **

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