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According to the UK pound sterling/Malaysian ringgit FX Cross rate chart, the former currency rose from the recent lows of 5.0197 on Nov 25 to as high as 5.5851 against the latter currency on Monday before pausing owing to an apparent profit-taking activity.
It was trading little changed at 5.5263 this morning.
The steady appreciation of the sterling recently witnessed the currency breaching the uppermost 200-day simple moving average (SMA) line on Nov 22, also the first time in 10 months, and it charged forward to penetrate the one-year-old bearish descending trendline briefly on Monday.
Though the sterling bulls had paused for air apparently, the positive breakout on the chart theoretically may spell more weakness for the ringgit going forward, with great volatility in crude oil prices weighing on the sentiment.
Turning to the indicators, the oscillator per cent K curved down from the top and dropped below the oscillator per cent D of the daily slow-stochastic momentum index to trigger a short-term sell at the overbought area.
Also on the slide, the 14-day relative strength index retraced from a reading of 88 on Nov 21 to a low of 73 points this morning.
In stark contrast, the daily moving average convergence/divergence histogram retained a comfortable posture above the daily signal line to keep the bullish note. It had issued a buy call on Oct 28.
Technically, the pound sterling is poised to slip into correction mode in the short-term, but it is expected to resume the rally once the present overbought condition is fully neutralised.
This may mean that for those who have an interest in the pound sterling, whether for hedging or investors, can consider buying on weakness.
Initial support for the pound is seen at 5.510, which is the 200-day SMA.
A crack of the lower 14-day SMA of 5.4674 will drag the sterling down to the 21-day SMA of 5.3772.
To the upside, a successful breakout of the recent peak of 5.5851 will signal a bullish turnaround, enroute to the 5.7427 barrier in the near-term.
The next upper hurdle is resting at the 5.8927 and heavy resistance is set at the 6.000-6.0615 band.
KUALA LUMPUR: The British pound sterling had a good run the past month, tracking the upward thrust in the US dollar index on renewed buying interest, as some major currency players began to argue the market had already priced-in the risks related to the messy exit from the European Union.
The positive momentum in the sterling was further boosted by a more upbeat tone and growth-supportive moves from the British government’s Autumn Statement on the budget recently.According to the UK pound sterling/Malaysian ringgit FX Cross rate chart, the former currency rose from the recent lows of 5.0197 on Nov 25 to as high as 5.5851 against the latter currency on Monday before pausing owing to an apparent profit-taking activity.
It was trading little changed at 5.5263 this morning.
The steady appreciation of the sterling recently witnessed the currency breaching the uppermost 200-day simple moving average (SMA) line on Nov 22, also the first time in 10 months, and it charged forward to penetrate the one-year-old bearish descending trendline briefly on Monday.
Though the sterling bulls had paused for air apparently, the positive breakout on the chart theoretically may spell more weakness for the ringgit going forward, with great volatility in crude oil prices weighing on the sentiment.
Turning to the indicators, the oscillator per cent K curved down from the top and dropped below the oscillator per cent D of the daily slow-stochastic momentum index to trigger a short-term sell at the overbought area.
Also on the slide, the 14-day relative strength index retraced from a reading of 88 on Nov 21 to a low of 73 points this morning.
In stark contrast, the daily moving average convergence/divergence histogram retained a comfortable posture above the daily signal line to keep the bullish note. It had issued a buy call on Oct 28.
Technically, the pound sterling is poised to slip into correction mode in the short-term, but it is expected to resume the rally once the present overbought condition is fully neutralised.
This may mean that for those who have an interest in the pound sterling, whether for hedging or investors, can consider buying on weakness.
Initial support for the pound is seen at 5.510, which is the 200-day SMA.
A crack of the lower 14-day SMA of 5.4674 will drag the sterling down to the 21-day SMA of 5.3772.
To the upside, a successful breakout of the recent peak of 5.5851 will signal a bullish turnaround, enroute to the 5.7427 barrier in the near-term.
The next upper hurdle is resting at the 5.8927 and heavy resistance is set at the 6.000-6.0615 band.
KUALA LUMPUR: The British pound sterling had a good run the past month, tracking the upward thrust in the US dollar index on renewed buying interest, as some major currency players began to argue the market had already priced-in the risks related to the messy exit from the European Union.
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