GBP/NOK may fall 705 - 965 pips

Our pivot point stands at 13.9720.

Our preference

The downside prevails as long as 13.9720 is resistance.

Alternative scenario

Above 13.9720, look for 14.0150 and 14.0410.

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 negative and below its signal line. The configuration is negative. Moreover, the price is trading under both its 20 and 50 period moving average (respectively at 13.9981 and 14.0081). Finally, the GBP/NOK has penetrated its lower Bollinger band (13.9362).

Supports and resistances

14.0410 **

14.0150 *

13.9720 **

13.9550

13.9325 last

13.8620

13.8360 **

13.8110 *

13.7850 **

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