FXB closes below its opening price unable to hold early session gains
CurrencyShares British Pound Ster ETF (FXB) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, FXB finished the week 0.41% higher at 117.89 after losing $0.45 (-0.38%) today ahead of tomorrow's Memorial Day market holiday. Trading $0.26 higher after the open, the ETF was unable to hold its gains as the bears took control ending the day below its opening price. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (FXB as at May 22, 2020):
Friday's trading range has been $0.34 (0.29%), that's below the last trading month's daily average range of $0.48. 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.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top. The last time a Bearish Spinning Top showed up on March 24th, FXB actually gained 1.19% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling could speed up should prices move below the nearby swing low at 117.35 where further sell stops might get activated.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Spinning Top" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for FXB. Out of 152 times, FXB closed higher 53.95% 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 10 trading days, showing a win rate of 62.50% with an average market move of 0.25%.