AUDGBP breaks below Tuesday's low
Australian Dollar/British Pound (AUDGBP) Technical Analysis Report for Jul 01, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, AUDGBP ended Wednesday at 0.5543 losing 24 pips (-0.43%) on low volume. Trading 16 pips higher after the open, the forex pair was unable to hold its gains as the bears took control ending the day below its opening price. Closing below Tuesday's low at 0.5564, the currency confirmed its breakout through the prior session low after trading up to 28 pips below it intraday.
Daily Candlestick Chart (AUDGBP as at Jul 01, 2020):
Wednesday's trading range has been 47 pips (0.84%), that's slightly below the last trading month's daily average range of 54 pips. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for AUDGBP.
One bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on June 11th, AUDGBP actually gained 0.68% on the following trading day.
Prices are trading close to the key technical support level at 0.5515 (S1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the close-by swing high at 0.5596 where further buy stops might get activated. Selling could accelerate should prices move below the nearby swing low at 0.5515 where further sell stops might get triggered.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for AUD/GBP. Out of 736 times, AUDGBP closed higher 52.31% 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 52.99% with an average market move of 0.06%.