EURGBP breaks below key technical support level
Euro/British Pound (EURGBP) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, EURGBP finished Thursday at 0.9039 losing 115 pips (-1.26%). Trading 85 pips higher after the open, EUR/GBP was unable to hold its gains as the bears took control ending the day below its opening price. Closing below Wednesday's low at 0.9056, the pair confirmed its breakout through the prior session low after trading up to 23 pips below it intraday.
Daily Candlestick Chart (EURGBP as at Mar 26, 2020):
Thursday's trading range has been 206 pips (2.25%), that's slightly above the last trading month's daily average range of 172 pips. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for EURGBP.
One bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical support level at 0.8994 (S1). Prices broke below the key technical support level at 0.9150 (now R1), which is likely to act as resistance going forward. The last time this happened on February 25th, EURGBP actually gained 0.79% on the following trading day. After having been unable to move lower than 0.9056 in the previous session, the forex pair found buyers again around the same price level today at 0.9033.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling might accelerate should prices move below the nearby swing low at 0.8994 where further sell stops could get activated.
Among the 10 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 EUR/GBP. Out of 393 times, EURGBP closed lower 52.93% 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 51.91% with an average market move of -0.02%.
With four out of the seven Major FX Pairs closing higher today, the ones that stand out on the positive side are GBPUSD gaining 2.72% and NZDUSD closing 1.88% higher. On the flipside the worst performers have been USDCHF closing -1.43% lower and USDJPY losing -1.42%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been GBPHKD surging 2.72% and GBPZAR closing 2.65% higher. The worst performers of the day have been USDMXN tanking -4.12% and USDNOK closing -3.12% lower. Read more