GBP/NOK may fall 479 - 699 pips

Our pivot point stands at 13.4340.

Our preference

The downside prevails as long as 13.4340 is resistance.

Alternative scenario

Above 13.4340, look for 13.4710 and 13.4940.

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 below its signal line and negative. The configuration is negative. Moreover, the price is trading under both its 20 and 50 period moving average (respectively at 13.4329 and 13.4375). Finally, the GBP/NOK has penetrated its lower Bollinger band (13.4074).

Supports and resistances

13.4940 **

13.4710 *

13.4340 **

13.4190

13.3889 last

13.3410

13.3190 **

13.2960 *

13.2740 **

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