In today’s comprehensive GBPNOK forecast, we will first scrutinize the current economic conditions in Norway. Following that, we will meticulously delve into the details of the technical analysis pertaining to the GBPNOK pair.
Manufacturing Slows Down in Norway
In October 2023, Norway’s manufacturing landscape saw a noticeable retreat, with the DNB Manufacturing PMI dipping to 47.9 from September’s adjusted figure of 51.8. This shift signals a decrease in factory activity, with new orders and production both taking a hit—falling to 45 and 45.7, respectively, from their September readings.
The pace of hiring in factories also saw a deceleration, easing down to a score of 52 from 53.5, hinting at a more cautious approach to staffing. Suppliers were delivering quicker, as indicated by the shorter delivery times at 48.7. Despite a slight increase in stock levels to 46.9, the rise points to a slackening in demand. Price trends also took a downward turn, with the index for the cost of purchased goods settling at 56.1, suggesting that while prices are still going up, the surge is not as steep as it has been historically.
GBPNOK Forecast: Technical Analysis
The GBPNOK has been oscillating within a tight range of 13.6 and 13.5 since October 24. Despite the formation of a hammer candlestick pattern on Monday, the bulls’ attempts to breach this ceiling have been consistently thwarted by the bears.
A closer look at the GBPNOK 4-hour chart provides a more detailed view of the price action. The Relative Strength Index (RSI) indicates divergence, which hasn’t reversed the trend but has indeed ranged the market and decelerated its momentum. The presence of a bearish channel lends support to the bullish bias. In this scenario, the GBPNOK’s targets could be Resistance 1 (R1), followed by Resistance 2 (R2) at 13.73.
However, if the bears manage to close below Support 1 (S1) at 13.45, it would invalidate the bullish scenario.
J.J Edwards is a finance expert with 15+ years in forex, hedge funds, trading systems, and market analysis.