GBPAUD pushes through Wednesday's high
British Pound/Australian Dollar (GBPAUD) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, GBPAUD ended Thursday at 2.0125 gaining 187 pips (0.94%). Closing above Wednesday's high at 1.9996, the market confirmed its breakout through the previous session high after trading up to 171 pips above it intraday.
Daily Candlestick Chart (GBPAUD as at Mar 26, 2020):
Thursday's trading range has been 328 pips (1.65%), that's slightly below the last trading month's daily average range of 451 pips. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for GBPAUD.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on March 12th, GBPAUD actually lost -1.84% on the following trading day.
Prices are trading close to the key technical resistance level at 2.0206 (R1).
While GBP/AUD is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Buying could speed up should prices move above the nearby swing high at 2.0364 where further buy stops might get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for GBP/AUD. Out of 706 times, GBPAUD closed higher 50.85% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 55.81% with an average market move of 0.17%.
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