Time to turn (2011-07-21 GBP analysis)

Singamas Container (0716.HK) which I analyzed on Tuesday finally broke down and closed at 3.21 today. It was supported well by 150-day Simple Moving Average. Whether it could climb higher depends on the power of resistance at 3.50.

Today let's see the British Pounds.

4-Hour chart of GBP:


After dropping to below 1.578 due to the low interest rate in UK, GBP started to climb again following the green up-trend line which is quite steep.

It retraced back to around 38.2% fibonacci level and faced resistance there. We could see 1.62 seemed to be a strong resistance level.

Other than the fibonacci, longer-term red down-trend line is also an extremely strong resistant to sterling.

Therefore, it is more likely that the pounds would drop or consolidate after having reached the red line. It could be back to 1.60.