AUDGBP closes above its opening price after recovering from early selling pressure
Australian Dollar/British Pound (AUDGBP) Technical Analysis Report for Jul 02, 2020 | by Techniquant Editorial Team
AUDGBP ended Thursday at 0.5556 gaining 13 pips (0.23%) on low volume. Trading up to 18 pips lower after the open, the forex pair managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on June 26th, AUDGBP gained 0.32% on the following trading day. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (AUDGBP as at Jul 02, 2020):
Thursday's trading range has been 31 pips (0.56%), that's far below the last trading month's daily average range of 53 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.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the nearby swing high at 0.5596 where further buy stops might get triggered. Selling could speed up should prices move below the close-by swing low at 0.5515 where further sell stops might get activated.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for AUD/GBP. Out of 737 times, AUDGBP closed higher 52.37% 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 53.05% with an average market move of 0.06%.