GBP/SGD may rise 56 - 79 pips

Our pivot point stands at 1.7203.

Our preference

The upside prevails as long as 1.7203 is support.

Alternative scenario

The downside breakout of 1.7203 would call for 1.7165 and 1.7143.

Comment

The RSI is above 70. It could mean either that the pair is in a lasting uptrend or just overbought and therefore bound to correct (look for bearish divergence in this case). The MACD is above its signal line and positive. The configuration is positive. Moreover, the price is above its 20 and 50 period moving average (respectively at 1.7212 and 1.7199). Finally, the GBP/SGD is trading above its upper Bollinger band (standing at 1.7249).

Supports and resistances

1.7377 **

1.7355 *

1.7333 **

1.7310

1.7254 last

1.7217

1.7203 **

1.7165 *

1.7143 **

Number of asterisks represents the strength of support and resistance levels.