FXB closes higher for the 2nd day in a row
CurrencyShares British Pound Ster ETF (FXB) Technical Analysis Report for May 29, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, FXB ended the month -1.97% lower at 119.62 after gaining $0.37 (0.31%) today. Trading up to $0.42 lower after the open, the ETF managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on April 29th, FXB gained 1.09% on the following trading day. 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 29, 2020):
Friday's trading range has been $0.80 (0.67%), that's far above the last trading month's daily average range of $0.47. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for FXB.
Two candlestick patterns are matching today's price action, the Bullish High-Wave Candle and the Bullish Spinning Top which are both known as bullish patterns.
The market managed to close above the 20-day moving average at 119.15 for the first time since May 4th. After having been unable to move lower than 119.02 in the prior session, FXB found buyers again around the same price level today at 119.13.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish High-Wave Candle" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for FXB. Out of 8 times, FXB closed lower 75.00% of the time on the next trading day after the market condition occurred.