GBP/NOK at 5-year High IB Times UK/FXStreet

The Norwegian Krone plummeted to fresh lows against its major counterparts on Thursday as Norges Bank unexpectedly signalled rate cut possibilities after leaving key rates unchanged at a scheduled review.

Against the pound, it plunged to a five-year low of 10.4615 on Thursday and the losses were extended to 10.4620 on Friday.

The cross has broken through the 38.2% Fibonacci retracement of the January 2007 to February 2013 downtrend and is now eyeing the 50% level of 10.67 ahead of 11.20, the 61.8% level.

The GBP/NOK has a support at 9.85 ahead of the 23.6% level of 9.50.

The EUR/NOK, the most traded NOK cross, has now broken the upside barrier of the downward channel since December 2013

It has resistance at 8.40 ahead of the four-year peak of 8.55 touched last year. Support is 8.20 ahead of 8.08 and then a stronger 7.76.

The NOKSEK fell sharply, further distancing from the one-year high of 1.1230 touched on 11 June and traded at a 1-1/2-month low of 1.09.

Next levels on the downside are 1.0790 and 1.0687, and the on the higher side, the levels to watch for are 1.10, 1.11 and then 1.1230 ahead of 1.13, the 61.8% retracement of the December 2012-January 2014 downtrend.

Data on 10 June showed that core consumer price index growth slowed to 0.2% month-on-month in May from 0.6% in April while the year-over-year measure dropped to 2.3% from 2.5%.

The pound's rally was stronger across the board compared to that of the euro as the UK is on a stronger growth path while the European Central Bank may be forced to make its monetary conditions more accommodative to shore up growth in the region.