GBPZAR update

The current pattern warns of a change in directional trend.

GBPZAR

The GBP/ZAR daily chart has formed an inverse head and shoulders formation, labelled L, H and R. The pattern warns of a change in directional trend from down to up, hence the term “reversal pattern”. In this scenario the pattern suggests GBP strength and ZAR weakness to come. The height of the pattern projected from the breakout level (R16.90/GBP) arrives at an upside target of R17.65/GBP, while a close below the right shoulder at R16.55/GBP would consider the failure of the inverse head and shoulders chart pattern. 

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This information has been prepared by IG, a trading name of IG Markets Limited and IG Markets South Africa Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. International accounts are offered by IG Markets Limited in the UK (FCA Number 195355), a juristic representative of IG Markets South Africa Limited (FSP No 41393). South African residents are required to obtain the necessary tax clearance certificates in line with their foreign investment allowance and may not use credit or debit cards to fund their international account.

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