GBPAUD runs into sellers around 1.9222 for the third day in a row
British Pound/Australian Dollar (GBPAUD) Technical Analysis Report for Jan 24, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, GBPAUD finished the week 1.22% higher at 1.9155 after edging lower 12 pips (-0.06%) today. Trading 54 pips higher after the open, GBP/AUD was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (GBPAUD as at Jan 24, 2020):
Friday's trading range has been 125 pips (0.65%), that's slightly below the last trading month's daily average range of 137 pips. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for GBPAUD.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, two candlestick patterns are matching today's price action, the Bearish Spinning Top and the Bearish High-Wave Candle which are both known as bearish patterns.
Prices broke below the key technical support level at 1.9158 (now R1), which is likely to act as resistance going forward. The FX pair ran into sellers again today around 1.9222 for the third trading day in a row after having found sellers at 1.9223 in the prior session and at 1.9225 two days ago. The last time this happened on November 26, 2019, GBPAUD actually gained 0.64% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the nearby swing high at 1.9225 where further buy stops could get activated.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish High-Wave Candle" stand out. Its common bearish interpretation has been confirmed for GBP/AUD. Out of 31 times, GBPAUD closed lower 54.84% 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 64.52% with an average market move of -0.42%.
With five out of the seven Major FX Pairs closing lower today, the ones that stand out on the negative side are GBPUSD losing -0.41% and AUDUSD closing -0.34% lower. On the flipside the best performers have been USDCHF closing 0.23% higher and USDCAD gaining 0.14%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been USDNOK surging 0.57% and USDPLN closing 0.53% higher. The worst performers of the day have been GBPJPY tanking -0.6% and AUDJPY closing -0.53% lower. Read more