GBP/ZAR may rise 1198 - 1771 pips

Our pivot point stands at 23.60.

Our preference

The upside prevails as long as 23.60 is support.

Alternative scenario

The downside breakout of 23.60 would call for 23.50 and 23.45.

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 23.49 and 23.41). Finally, the GBP/ZAR is trading above its upper Bollinger band (standing at 23.70).

Supports and resistances

24.04 **

23.99 *

23.93 **

23.87

23.75 last

23.64

23.60 **

23.50 *

23.45 **

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