FXB closes higher for the 4th day in a row
CurrencyShares British Pound Ster ETF (FXB) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, FXB finished Wednesday at 125.37 gaining $0.67 (0.54%). Trading $0.18 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price.
Daily Candlestick Chart (FXB as at Sep 16, 2020):
Wednesday's trading range has been $0.49 (0.39%), that's slightly below the last trading month's daily average range of $0.67. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for FXB.
Prices are trading close to the key technical support level at 124.89 (S1). After spiking up to 125.73 during the day, the ETF found resistance at the 50-day moving average at 125.57. The last time this happened on April 10, 2019, FXB lost -0.25% on the following trading day.
While FXB is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "4 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for FXB. Out of 72 times, FXB closed higher 54.17% of the time on the next trading day after the market condition occurred.