AUDGBP closes higher for the 2nd day in a row
Australian Dollar/British Pound (AUDGBP) Technical Analysis Report for Jul 03, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, AUDGBP finished the week -0.07% lower at 0.5561 after edging higher 5 pips (0.09%) today on low volume. Closing above Thursday's high at 0.5558, the FX pair confirmed its breakout through the prior session high after trading up to 16 pips above it intraday.
Daily Candlestick Chart (AUDGBP as at Jul 03, 2020):
Friday's trading range has been 26 pips (0.47%), that's far below the last trading month's daily average range of 51 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 0.5527 where further sell stops might get activated.
Among the four 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 738 times, AUDGBP closed higher 52.44% 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 52.98% with an average market move of 0.06%.