GBPHKD dominated by bears dragging the market lower throughout the day
British Pound/Hong Kong Dollar (GBPHKD) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, GBPHKD ended the week 0.57% higher at 9.4360 after losing 424 pips (-0.45%) today. The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 9.4442, the forex pair confirmed its breakout through the previous session low after trading up to 125 pips below it intraday.
Daily Candlestick Chart (GBPHKD as at May 22, 2020):
Friday's trading range has been 544 pips (0.57%), that's far below the last trading month's daily average range of 883 pips. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for GBPHKD.
Two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns. The last time a Black Candle showed up on May 15th, GBPHKD actually gained 0.75% on the following trading day.
Prices are trading close to the key technical support level at 9.4304 (S1).
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 9.5309 where further buy stops could get activated. Selling might speed up should prices move below the nearby swing low at 9.3595 where further sell stops could get triggered.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Short Candle" stand out. Its common bearish interpretation has been confirmed for GBP/HKD. Out of 76 times, GBPHKD closed lower 59.21% 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 seven trading days, showing a win rate of 50.00% with an average market move of -0.05%.
With four out of the seven Major FX Pairs closing lower today, the ones that stand out on the negative side are GBPUSD losing -0.47% and EURUSD closing -0.44% lower. On the flipside the best performers have been USDCAD closing 0.33% higher and USDCHF gaining 0.08%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been USDCZK surging 1.09% and USDHUF closing 0.9% higher. The worst performers of the day have been USDMXN tanking -0.58% and SGDHKD closing -0.51% lower. Read more