EURGBP plummets -0.84% closing 77 pips lower
Euro/British Pound (EURGBP) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, EURGBP ended Wednesday at 0.9112 tanking 77 pips (-0.84%). This is the biggest single-day loss in over two months. The bears were in full control today, moving the market lower throughout the whole session. Closing below Tuesday's low at 0.9184, the forex pair confirmed its breakout through the prior session low after trading up to 89 pips below it intraday.
Daily Candlestick Chart (EURGBP as at Sep 16, 2020):
Wednesday's trading range has been 112 pips (1.22%), that's far above the last trading month's daily average range of 74 pips. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently 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 0.9070 (S1). Prices broke below the key technical support level at 0.9138 (now R1), which is likely to act as resistance going forward. The last time this happened on September 2nd, EURGBP actually gained 0.53% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Strong Down Move" stand out. Its common bearish interpretation has been confirmed for EUR/GBP. Out of 198 times, EURGBP closed lower 54.55% 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 nine trading days, showing a win rate of 48.99% with an average market move of 0.03%.
With four out of the seven Major FX Pairs closing higher today, the ones that stand out on the positive side are GBPUSD gaining 0.61% and NZDUSD closing 0.27% higher. On the flipside the worst performers have been USDJPY closing -0.47% lower and EURUSD losing -0.25%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been GBPPLN surging 0.81% and ZARJPY closing 0.78% higher. The worst performers of the day have been EURZAR tanking -1.42% and CHFZAR closing -1.28% lower. Read more