FXB ends the day on a bullish note closing near the high of the day
CurrencyShares British Pound Ster ETF (FXB) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, FXB finished Thursday at 118.54 surging $3.32 (2.88%). This is the biggest single-day gain in over 11 years. The last time we've seen such an unusually strong single-day gain on January 31st, FXB actually lost -1.59% on the following trading day. The bulls were in full control today, moving the market higher throughout the whole session. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (FXB as at Mar 26, 2020):
Thursday's trading range has been $2.40 (2.06%), that's above the last trading month's daily average range of $1.57. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for FXB.
One bullish candlestick pattern matches today's price action, the White Candle.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Very Strong Up Move" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for FXB. Out of 121 times, FXB closed lower 52.07% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 55.37% with an average market move of -0.32%.