GBP/NOK may fall 703 - 1033 pips

Our pivot point is at 13.7780.

Our preference

The downside prevails as long as 13.7780 is resistance.

Alternative scenario

Above 13.7780, look for 13.8340 and 13.8680.

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 13.8176 and 13.8651). Finally, the GBP/NOK is trading below its lower Bollinger band (standing at 13.7422).

Supports and resistances

13.8680 **

13.8340 *

13.7780 **

13.7550

13.7273 last

13.6570

13.6240 **

13.5900 *

13.5560 **

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