GBP/ZAR may fall 1737 - 2387 pips

Our pivot point is at 23.10.

Our preference

The downside prevails as long as 23.10 is resistance.

Alternative scenario

The upside breakout of 23.10, would call for 23.21 and 23.27.

Comment

The RSI is below 30. It could either mean that the pair is in a lasting downtrend or just oversold and therefore bound to retrace (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 23.14 and 23.15). Finally, the GBP/ZAR is trading below its lower Bollinger band (standing at 22.99).

Supports and resistances

23.27 **

23.21 *

23.10 **

23.06

22.98 last

22.81

22.75 **

22.68 *

22.62 **

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