GBPEUR surges, gaining 99 pips (0.9%) within a single day on low volume
British Pound/Euro (GBPEUR) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
GBPEUR ended the month -0.71% lower at 1.1040 after surging 99 pips (0.9%) today on low volume. This is the biggest single-day gain in over three weeks. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 1.1011, the forex pair confirmed its breakout through the previous session high after trading up to 30 pips above it intraday.
Daily Candlestick Chart (GBPEUR as at Jun 30, 2020):
Tuesday's trading range has been 108 pips (0.99%), that's above the last trading month's daily average range of 88 pips. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for GBPEUR.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on June 5th, GBPEUR gained 0.42% on the following trading day.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and could now be heading back up towards the mean of the Bollinger Bands at 1.1117.
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 1.1110 where further buy stops could get activated.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Very Strong Up Move" stand out. Its common bullish interpretation has been confirmed for GBP/EUR. Out of 123 times, GBPEUR closed higher 56.91% 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 three trading days, showing a win rate of 55.28% with an average market move of 0.07%.