GBP/NOK may rise 425 - 635 pips

Our pivot point is at 13.4540.

Our preference

The upside prevails as long as 13.4540 is support.

Alternative scenario

The downside breakout of 13.4540 would call for 13.4190 and 13.3980.

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 13.4012 and 13.3853). Finally, the GBP/NOK is trading above its upper Bollinger band (standing at 13.4734).

Supports and resistances

13.6040 **

13.5830 *

13.5620 **

13.5410

13.4985 last

13.4680

13.4540 **

13.4190 *

13.3980 **

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