GBPAUD closes within previous day's range after lackluster session
British Pound/Australian Dollar (GBPAUD) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
GBPAUD ended the week -1.38% lower at 1.8610 after edging lower 5 pips (-0.03%) today. Trading 103 pips higher after the open, the forex pair was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on May 15th, GBPAUD lost -0.95% on the following trading day. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (GBPAUD as at May 22, 2020):
Friday's trading range has been 116 pips (0.62%), that's below the last trading month's daily average range of 175 pips. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for GBPAUD.
One bearish candlestick pattern matches today's price action, the Bearish Hikkake Pattern.
Prices are trading close to the key technical support level at 1.8526 (S1).
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might accelerate should prices move above the nearby swing high at 1.8764 where further buy stops could get activated. Selling might speed up should prices move below the close-by swing low at 1.8526 where further sell stops could get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Hikkake Pattern" stand out. Its common bearish interpretation has been confirmed for GBP/AUD. Out of 111 times, GBPAUD closed lower 56.76% 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 eight trading days, showing a win rate of 53.15% with an average market move of -0.10%.
With four out of the seven Major FX Pairs closing lower today, the ones that stand out on the negative side are GBPUSD losing -0.47% and EURUSD closing -0.44% lower. On the flipside the best performers have been USDCAD closing 0.33% higher and USDCHF gaining 0.08%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been USDCZK surging 1.09% and USDHUF closing 0.9% higher. The worst performers of the day have been USDMXN tanking -0.58% and SGDHKD closing -0.51% lower. Read more