GBP/SGD

Good day all,

I have been trading the GBP/SGD pair for some time already, so I decided I should start sharing my analysis of it here. This will be my first post on it, and hopefully there will be more to come.

As our Singdollar appreciated over the long-term against major currencies, the long-term look of  the chart of GBPSGD is obviously a long downtrend. In the chart below, I drew a large downward parallel channel to depict the strengthening of the Singdollar against the Pound. Major lows at the 1.9500 region will be the interesting point. Right now, GBPSGD is ranging about 200-400 pips above the major low.

Taking a high at 2.2000, and the low at 1.9275, I plotted fibonacci retracement studies to see where the vital retracement levels were. Like magic, the retracement upwards in November, 2011 went all the way to the 50% level and dropped back down after that. Price has recently slid below and is testing the 200-day MA and the 23.6% level. Looking at the big picture, I have to be bearish on the GBP/SGD pair.

Moving in, I found a confirmed head and shoulders pattern just as price reached the 50% retracement level (red boxes). A straightforward projection will be for GBPSGD to get down to major lows below 1.9500. Seeing how we are clearly under the 200-day MA after a failed test up there (mid-February, 2012), and trading in a confirmed bearish pattern, I will look to short the rallies in GBPSGD.

All analyses, recommendations, discussions and other information herein are published for general information. Readers should not rely solely on the information published on this blog and should seek independent financial advice prior to making any investment decision. The publisher accepts no liability for any loss whatsoever arising from any use of the information published herein.

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