GBP/SGD Forecast Today 08/11: Bounces Around (Chart)
Date
11/8/2024 4:19:20 AM
(MENAFN- Daily Forex)
During my daily analysis of exotic currency pairs, I have managed to stumble upon the British pound against the Singapore dollar. As the market has been all over the place during the trading session, it does suggest that perhaps the bank of England gave people a lot to think about, as the interest rate was cut by 25 basis points. At the same time there are concerns about inflation going forward, so traders seem a little bit concerned.
This is especially interesting against exotic currency such as the Singapore dollar, and it does lead to extreme volatile moves. All things being equal though, technical analysis can be used to get a grasp on what might be happening. After all, the Singapore dollar is considered to be a bastion of stability for Asian traders, so it's interesting to see that as I do the analysis for the session, we have essentially gone back and forth multiple times, just to tread water.
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The technical analysis for this pair is very sideways. That has been the case for several months now, and the fact that we are right back at the 1.7150 level suggests to me that we are going to continue to see more of the same. In other words, if you are a range bound trader, you probably will find a lot of interest in trading in this market, as the 50 Day EMA and the 200 Day EMA indicators are both flat.
It's worth noting that the 1.70 SGD level has been important multiple times, and we have bounced from there multiple times as well. All things being equal, you have to look at this through the prism of a market that if we were to break down below there, that would be extraordinarily negative for the British pound. However, when you look to the upside you see the 1.7250 SGD level offering a significant amount of resistance, and therefore I think we have a situation where that being broken to the upside would be a huge move just waiting to happen. Until we break out of this range, it's just a matter of going back and forth if you are patient enough to wait for the set up.
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