GBPEUR closes above its opening price after recovering from early selling pressure
British Pound/Euro (GBPEUR) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, GBPEUR finished Thursday at 1.1063 gaining 139 pips (1.27%). Trading up to 100 pips lower after the open, the forex pair managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Wednesday's high at 1.1042, the FX pair confirmed its breakout through the prior session high after trading up to 29 pips above it intraday.
Daily Candlestick Chart (GBPEUR as at Mar 26, 2020):
Thursday's trading range has been 247 pips (2.26%), that's slightly above the last trading month's daily average range of 211 pips. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for GBPEUR.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 1.0929 (now S1), which is likely to act as support going forward. The last time this happened on February 25th, GBPEUR actually lost -0.78% on the following trading day. Prices are trading close to the key technical resistance level at 1.1119 (R1). After having been unable to move above 1.1042 in the previous session, the pair ran into sellers again around the same price level today, missing to move higher than 1.1071.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might accelerate should prices move above the close-by swing high at 1.1119 where further buy stops could get activated.
Among the 10 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/EUR. Out of 409 times, GBPEUR closed higher 54.03% 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 51.59% with an average market move of 0.01%.