AUDGBP closes higher for the 3rd day in a row
Australian Dollar/British Pound (AUDGBP) Technical Analysis Report for Jul 06, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, AUDGBP ended Monday at 0.5582 gaining 21 pips (0.38%) on low volume. Closing above Friday's high at 0.5574, the currency confirmed its breakout through the previous session high after trading up to 17 pips above it intraday.
Daily Candlestick Chart (AUDGBP as at Jul 06, 2020):
Monday's trading range has been 37 pips (0.67%), that's 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.
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 29th, AUDGBP actually lost -0.29% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the close-by swing high at 0.5596 where further buy stops could get triggered.
Among the six 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 739 times, AUDGBP closed higher 52.50% 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 53.04% with an average market move of 0.06%.