AUDGBP closes within previous day's range after lackluster session
Australian Dollar/British Pound (AUDGBP) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
AUDGBP ended the week 1.4% higher at 0.5373 after edging higher 1 pip (0.02%) today. Trading up to 29 pips lower after the open, the FX pair managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on May 15th, AUDGBP gained 0.96% on the following trading day. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (AUDGBP as at May 22, 2020):
Friday's trading range has been 33 pips (0.61%), that's below the last trading month's daily average range of 48 pips. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for AUDGBP.
Two candlestick patterns are matching today's price action, the Bullish Hikkake Pattern which is known as bullish pattern and one bearish pattern, the Hanging Man.
Prices are trading close to the key technical resistance level at 0.5398 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the close-by swing high at 0.5398 where further buy stops might get activated. Selling could speed up should prices move below the nearby swing low at 0.5329 where further sell stops might get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Hikkake Pattern" stand out. Its common bullish interpretation has been confirmed for AUD/GBP. Out of 99 times, AUDGBP closed higher 54.55% 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 eight trading days, showing a win rate of 51.52% with an average market move of 0.11%.