FXB runs into sellers again around 128.95
CurrencyShares British Pound Ster ETF (FXB) Technical Analysis Report for Mar 15, 2019 | by Techniquant Editorial Team
FXB ended the week 2.13% higher at 128.90 after gaining $0.63 (0.49%) today. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 128.83, the ETF confirmed its breakout through the previous session high after trading up to $0.12 above it intraday.
Daily Candlestick Chart (FXB as at Mar 15, 2019):
Friday's trading range has been $0.34 (0.26%), that's far below the last trading month's daily average range of $0.71. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for FXB.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns.
After having been unable to move above 128.83 in the prior session, the market ran into sellers again around the same price level today, failing to move higher than 128.95.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term. With its 50-day moving average crossing above its 200-day moving average, FXB has entered a so-called "Golden Cross" for the first time since June 19, 2018. Showing increasing upward momentum in the short and medium-term the "Golden Cross" is known to indicate a potential bull market on the horizon. When the last "Golden Cross" happened on May 18, 2017, FXB gained 0.71% on the following trading day.
With prices trading close to this year's high at 129.47, upside momentum might accelerate should the ETF be able to break out to new highs for the year.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Short Candle" stand out. Its common bullish interpretation has been confirmed for FXB. Out of 113 times, FXB closed higher 55.75% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after four trading days, showing a win rate of 59.29% with an average market move of 0.08%.