The Great British Pound/Singapore Dollar currency pair (also referred to as GBPSGD and GBP/SGD) is represents the currencies of the United Kingdom and Singapore. In this article, we will examine how GBPSGD is performing.
GBPSGD Key Stats
- 2021 high: 1.8930
- 2021 low: 1.7960
- YTD high: 1.8500
- YTD low: 1.6528
- YTD % change: -8.96%
GBPSGD Forecast
Given the recent fall and the challenges facing the economy in the UK, it’s hard to see an immediate turnaround for the pair. In the near to mid-term, we believe the stock will continue to decline, with the low point from 2016, 1.59998, the area we are looking for.
However, over the long term, we do see this turning around. With 1.70 being the first level, we will watch when the current trend shows signs of a reversal.
GBPSGD Fundamental Analysis
Fundamental analysis is a proven investment strategy for both long and short-term investments. The price of major currencies is impacted by numerous economic factors which can dictate the directional move of a currency pair. Factors such as unemployment, retail sales, interest rates, and much more can dictate how a currency pair moves, so it is essential to understand the current macroeconomic environment.
The GBP has faced several challenges over the last few years, with Brexit being a primary factor in the pound’s decline. Trade disputes have emerged despite a deal between the UK and the European Union. Add to that the economic impact of the Covid lockdowns, and we have a clear understanding of why the pound has tumbled in recent times. In addition, inflation is soaring, and with the last 25bps BoE rate rise not enough in many people’s eyes, the BoE is expected to hike rates by 50bps in August.
The Singapore Dollar has been a favored choice for offshore investors as it holds a growing financial center and stable housing prices. Its high rate of growth is achieved due to it having one of the most business-friendly regulatory environments for entrepreneurs. It is a major trading hub, and its manufacturing and services sector remains one of its key drivers of growth. The latest news for the Singapore economy saw the country’s central bank tighten its monetary policy, in an off-cycle move, in an attempt to slow inflation. The central banks re-centered the mid-point of the exchange rate policy.
GBPSGD Technical Analysis
Support Levels:
- 1.6672
- 1.6555
- 1.6500
Resistance Levels:
- 1.7000
- 1.7175
- 1.7466
The GBPSGD has had quite a bearish run this year and recently hit its lowest level since October 2016. It is currently close to level 1.6672, and this is the first key level in which the price has bounced off a few times since 2017. As for level 1.6555, this is the lowest level noted by the GBPSGD, and this may act as an excellent floor for price. Finally, 1.6500 will be key psychologically. Price has yet to reach this low, and with it being a key round number, bullish traders may appear.
The GBPSGD will offer some ideal resistance levels for the price to retrace back to after a strong bear run. Level 1.7000 will be the first key level traders should keep an eye out for. However, if this level is broken, the next level would be 1.7175. As a support level, it has held strong. However, it’s yet to be tested as a resistance level, and this will be a key area for traders. Finally, level 1.7466 is quite a distance from its current price. However, this may be important to watch for any bounceback if the price is able to reach these highs.
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