GBP/ZAR may fall 1550 - 2191 pips

Our pivot point stands at 23.97.

Our preference

The downside prevails as long as 23.97 is resistance.

Alternative scenario

Above 23.97, look for 24.07 and 24.14.

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 23.98 and 24.01). Finally, the GBP/ZAR has penetrated its lower Bollinger band (23.86).

Supports and resistances

24.14 **

24.07 *

23.97 **

23.92

23.80 last

23.65

23.59 **

23.52 *

23.46 **

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