On a Daily time frame, GBP/SGD has formed a Flag and Pole pattern, usually a Flag and Pole is a continuation pattern, which means it will resume the previous trend. The trend in GBP/USD is bearish a small retracement has been witnessed forming the pattern. A breakout on the downside will resume the downtrend which will follow a good down run making a new low- whereas a breakout on the upside would be a change in trend.

Currently, the price is trading near the Fast and Slow EMA, at the breakout the price should trade below both the EMA.

Currently, the momentum indicator RSI is trading near 42.24 marks, at breakout the RSI should not be less than 20, if the RSI is 20 wait for the pullback and enter after the pullback.

Advice: Go short if the above conditions are fulfilled.

Flag And Pole

Oct 17 2023