GBPAUD pushes through Tuesday's high
British Pound/Australian Dollar (GBPAUD) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, GBPAUD finished Wednesday at 1.7749 gaining 97 pips (0.55%). Closing above Tuesday's high at 1.7666, the pair confirmed its breakout through the prior session high after trading up to 121 pips above it intraday.
Daily Candlestick Chart (GBPAUD as at Sep 16, 2020):
Wednesday's trading range has been 197 pips (1.12%), that's above the last trading month's daily average range of 145 pips. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for GBPAUD.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 1.7695 (now S1), which is likely to act as support going forward. The last time this happened on August 20th, GBPAUD actually lost -0.51% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Resistance R1" stand out. Its common bullish interpretation has been confirmed for GBP/AUD. Out of 355 times, GBPAUD closed higher 52.11% 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 55.49% with an average market move of 0.22%.
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