GBPEUR pops to highest close since July 10th
British Pound/Euro (GBPEUR) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, GBPEUR finished the month 0.64% higher at 1.1111 after gaining 58 pips (0.52%) today on high volume. Today's close at 1.1111 marks the highest recorded closing price since July 10th. Closing above Thursday's high at 1.1090, the currency confirmed its breakout through the prior session high after trading up to 45 pips above it intraday.
Daily Candlestick Chart (GBPEUR as at Jul 31, 2020):
Friday's trading range has been 101 pips (0.91%), that's above the last trading month's daily average range of 78 pips. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower 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 Tuesday, GBPEUR actually lost -0.14% on the following trading day.
The forex pair managed to close above the 50-day moving average at 1.1098 for the first time since May 14th.
The market shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
As prices are trading close to July's high at 1.1188, upside momentum could accelerate should the FX pair mark new highs for the month.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 50" stand out. Its common bullish interpretation has been confirmed for GBP/EUR. Out of 116 times, GBPEUR closed higher 57.76% 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 59.48% with an average market move of 0.16%.