AUDGBP closes lower for the 3rd day in a row
Australian Dollar/British Pound (AUDGBP) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, AUDGBP ended Wednesday at 0.5634 losing 31 pips (-0.55%). Closing below Tuesday's low at 0.5661, the market confirmed its breakout through the prior session low after trading up to 39 pips below it intraday.
Daily Candlestick Chart (AUDGBP as at Sep 16, 2020):
Wednesday's trading range has been 63 pips (1.11%), that's above the last trading month's daily average range of 45 pips. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for AUDGBP.
One bearish candlestick pattern matches today's price action, the Black Candle.
Prices broke below the key technical support level at 0.5651 (now R1), which is likely to act as resistance going forward. The last time this happened on August 20th, AUDGBP actually gained 0.51% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Support S1" stand out. Its common bearish interpretation has been confirmed for AUD/GBP. Out of 346 times, AUDGBP closed lower 51.73% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 53.47% with an average market move of -0.10%.