EURGBP dominated by bears dragging the market lower throughout the day
Euro/British Pound (EURGBP) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
EURGBP finished the month 0.71% higher at 0.9058 after tanking 82 pips (-0.9%) today on low volume. This is the biggest single-day loss in over three weeks. The bears were in full control today, moving the market lower throughout the whole session. Closing below Monday's low at 0.9082, EUR/GBP confirmed its breakout through the prior session low after trading up to 25 pips below it intraday.
Daily Candlestick Chart (EURGBP as at Jun 30, 2020):
Tuesday's trading range has been 90 pips (0.98%), that's above the last trading month's daily average range of 71 pips. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for EURGBP.
One bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on June 5th, EURGBP lost -0.42% on the following trading day.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and might now be heading back down towards the mean of the Bollinger Bands at 0.8996.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling could accelerate should prices move below the nearby swing low at 0.9001 where further sell stops might get activated.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Very Strong Down Move" stand out. Its common bearish interpretation has been confirmed for EUR/GBP. Out of 120 times, EURGBP closed lower 56.67% 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 three trading days, showing a win rate of 55.83% with an average market move of -0.07%.
With four out of the seven Major FX Pairs closing higher today, the ones that stand out on the positive side are GBPUSD gaining 0.82% and NZDUSD closing 0.53% higher. On the flipside the worst performers have been USDCAD closing -0.62% lower and USDCHF losing -0.41%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been GBPZAR surging 1.31% and GBPJPY closing 1.16% higher. The worst performers of the day have been USDNOK tanking -1.51% and EURCAD closing -0.7% lower. Read more