GBPEUR closes within prior day's range after lackluster session
British Pound/Euro (GBPEUR) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
GBPEUR ended the week -0.23% lower at 1.1161 after edging lower 1 pip (-0.01%) today on low volume. 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 (GBPEUR as at May 22, 2020):
Friday's trading range has been 51 pips (0.46%), that's far below the last trading month's daily average range of 87 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 GBPEUR.
Two candlestick patterns are matching today's price action, the Southern Doji which is known as bullish pattern and one neutral pattern, the Doji. The last time a Southern Doji showed up on February 21st, GBPEUR actually lost -0.27% on the following trading day.
Prices are trading close to the key technical support level at 1.1119 (S1).
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Selling might accelerate should prices move below the nearby swing low at 1.1111 where further sell stops could get activated.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Southern Doji" stand out. Its common bullish interpretation has been confirmed for GBP/EUR. Out of 43 times, GBPEUR closed higher 60.47% 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 0.22%.