GBPEUR dominated by bulls lifting the market higher throughout the day
British Pound/Euro (GBPEUR) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, GBPEUR ended Wednesday at 1.0975 gaining 92 pips (0.85%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Tuesday's high at 1.0889, the market confirmed its breakout through the previous session high after trading up to 106 pips above it intraday.
Daily Candlestick Chart (GBPEUR as at Sep 16, 2020):
Wednesday's trading range has been 134 pips (1.23%), that's far above the last trading month's daily average range of 90 pips. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently 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 1.0943 (now S1), which is likely to act as support going forward. The last time this happened on September 2nd, GBPEUR actually lost -0.52% on the following trading day. Prices are trading close to the key technical resistance level at 1.1025 (R1).
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) above 80" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for GBP/EUR. Out of 290 times, GBPEUR closed higher 51.72% 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 four trading days, showing a win rate of 51.72% with an average market move of 0.03%.