The Singapore dollar has shown great strength for the past 12 months against the Great British pound, underpinned by the Singaporean economy growing 7.6% and expectations for it to continue growing the rest of this year. Adding to the strength of the Singapore dollar in recent weeks is China starting to lift its strict lockdowns, as China is Singapore’s third largest trading partner.

Looking at the weekly chart of the GBPSGD, we can easily see the strength of Singapore weighing this pair down. The GBPSGD has recently taken out the low from June 2020 and is possibly targeting the March 2020 next.

GBPSGD 1W

With an Aroon indicator on the chart of GBPSGD, we can look at the portions highlighted within the two circles and their corresponding trends in the chart above. The Aroon indicator is typically used for spotting trends and the strength of trends by following the movement of an orange ‘Up’ line and a Blue ‘Down’ line.

Within the first circle, the rising Up and Down lines suggest a weak trend for the corresponding chart. As such, the uptrend quickly petered out and entered a period of consolidation and a quicker reversal.