South African Rand Nears Golden Cross Buy Signal to Pound: Chart

The rand’s 50-day average against the pound is close to falling below the 100-day average, a so-called golden cross that is a signal to some traders to buy South Africa’s currency. In February 2015, the opposite happened: a so-called death cross that presaged a 29 percent slump in the rand over the next 12 months. While a golden cross would suggest the rand is set to extend its 5.5 percent gain against the pound this year, that’s not all good news: a stronger rand would make South Africa’s exports to the U.K., the third-biggest buyer of the nation’s goods, more expensive.

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