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 Jun 30, 2020 | by Techniquant Editorial Team
FXB ended the month 0.29% higher at 119.97 after gaining $0.97 (0.82%) today. 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 Jun 30, 2020):
Tuesday's trading range has been $0.87 (0.73%), that's far above the last trading month's daily average range of $0.61. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below 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 Belt-hold and the White Candle which are both known as bullish patterns. The last time a White Candle showed up on June 23rd, FXB actually lost -0.83% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Belt-hold" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for FXB. Out of 47 times, FXB closed lower 57.45% 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 46.81% with an average market move of -0.06%.