GBPHKD surges, gaining 2501 pips (2.72%) within a single day
British Pound/Hong Kong Dollar (GBPHKD) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, GBPHKD ended Thursday at 9.4599 surging 2501 pips (2.72%). This is the biggest single-day gain in over three years. The last time we've seen such an unusually strong single-day gain on January 31st, GBPHKD actually lost -1.57% on the following trading day. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 9.2848, the FX pair confirmed its breakout through the previous session high after trading up to 1951 pips above it intraday.
Daily Candlestick Chart (GBPHKD as at Mar 26, 2020):
Thursday's trading range has been 3493 pips (3.79%), that's far above the last trading month's daily average range of 2089 pips. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for GBPHKD.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 9.2587 (now S1), which is likely to act as support going forward.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
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. Though it is usually interpreted as bullish, it has actually shown to be bearish for GBP/HKD. Out of 129 times, GBPHKD closed lower 55.04% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 51.16% with an average market move of -0.20%.
With four out of the seven Major FX Pairs closing higher today, the ones that stand out on the positive side are GBPUSD gaining 2.72% and NZDUSD closing 1.88% higher. On the flipside the worst performers have been USDCHF closing -1.43% lower and USDJPY losing -1.42%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been GBPZAR surging 2.65% and NZDHKD closing 1.87% higher. The worst performers of the day have been USDMXN tanking -4.12% and USDNOK closing -3.12% lower. Read more