GBPNZD closes within previous day's range after lackluster session
British Pound/New Zealand Dollar (GBPNZD) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
GBPNZD finished the month -3.48% lower at 1.9213 after gaining 58 pips (0.3%) today on low volume. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (GBPNZD as at Jun 30, 2020):
Tuesday's trading range has been 98 pips (0.51%), that's far below the last trading month's daily average range of 166 pips. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for GBPNZD.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns. The last time a White Candle showed up on June 11th, GBPNZD actually lost -0.73% on the following trading day.
After trading down to 1.9133 earlier during the day, the market bounced off the key technical support level at 1.9140 (S1). The failure to close below the support might increase that levels importance as support going forward. After having been unable to move lower than 1.9123 in the prior session, GBP/NZD found buyers again around the same price level today at 1.9133.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling could speed up should prices move below the nearby swing low at 1.9123 where further sell stops might get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Up Close near high of period" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for GBP/NZD. Out of 476 times, GBPNZD closed lower 53.57% 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 50.63% with an average market move of -0.11%.
With four out of the seven Major FX Pairs closing higher today, the ones that stand out on the positive side are GBPUSD gaining 0.82% and NZDUSD closing 0.53% higher. On the flipside the worst performers have been USDCAD closing -0.62% lower and USDCHF losing -0.41%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been GBPZAR surging 1.31% and GBPJPY closing 1.16% higher. The worst performers of the day have been USDNOK tanking -1.51% and EURGBP closing -0.9% lower. Read more