AUDGBP closes higher for the 3rd day in a row
Australian Dollar/British Pound (AUDGBP) Technical Analysis Report for Jun 29, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, AUDGBP finished Monday at 0.5583 gaining 18 pips (0.32%) on low volume. Today's close at 0.5583 marks the highest recorded closing price since September 3, 2019. Closing above Friday's high at 0.5567, the forex pair confirmed its breakout through the previous session high after trading up to 22 pips above it intraday.
Daily Candlestick Chart (AUDGBP as at Jun 29, 2020):
Monday's trading range has been 41 pips (0.74%), that's far below the last trading month's daily average range of 57 pips. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for AUDGBP.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns. The last time a White Candle showed up on June 26th, AUDGBP gained 0.32% on the following trading day.
Crossing above the upper Bollinger Band for the first time since June 3rd, prices have shown unusually strong upward momentum in the short-term. This could either indicate a potential buying climax after which prices might head back down towards the mean of the Bollinger Bands at 0.5510 or signal the beginning of a strong momentum breakout leading to even higher prices.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Short Candle" stand out. Its common bullish interpretation has been confirmed for AUD/GBP. Out of 77 times, AUDGBP closed higher 51.95% 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 two trading days, showing a win rate of 55.84% with an average market move of -0.01%.