GBPHKD closes higher for the 3rd day in a row


British Pound/Hong Kong Dollar (GBPHKD) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team

Highlights

GBPHKD fails to close above 50-day moving average
GBPHKD closes higher for the 3rd day in a row
GBPHKD pushes through Tuesday's high

Overview

Moving higher for the 3rd day in a row, GBPHKD finished Wednesday at 10.0499 gaining 611 pips (0.61%) on high volume. Closing above Tuesday's high at 10.0180, the currency confirmed its breakout through the prior session high after trading up to 628 pips above it intraday.

Daily Candlestick Chart (GBPHKD as at Sep 16, 2020):

Daily technical analysis candlestick chart for British Pound/Hong Kong Dollar (GBPHKD) as at Sep 16, 2020

Wednesday's trading range has been 1025 pips (1.03%), that's slightly below the last trading month's daily average range of 1079 pips. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for GBPHKD.

One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on August 28th, GBPHKD gained 0.12% on the following trading day.

After spiking up to 10.0808 during the day, the FX pair found resistance at the 50-day moving average at 10.0651.

While the market is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.

Buying might accelerate should prices move above the close-by swing high at 10.1031 where further buy stops could get activated.

Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Bounce off SMA 50" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for GBP/HKD. Out of 69 times, GBPHKD closed higher 55.07% 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 65.22% with an average market move of 0.36%.

With four out of the seven Major FX Pairs closing higher today, the ones that stand out on the positive side are GBPUSD gaining 0.61% and NZDUSD closing 0.27% higher. On the flipside the worst performers have been USDJPY closing -0.47% lower and EURUSD losing -0.25%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been GBPPLN surging 0.81% and ZARJPY closing 0.78% higher. The worst performers of the day have been EURZAR tanking -1.42% and CHFZAR closing -1.28% lower. Read more


Market Conditions for GBPHKD as at Sep 16, 2020

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