GBPPLN closes higher for the 6th day in a row
British Pound/Polish Zloty (GBPPLN) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 6th day in a row, GBPPLN finished the week 1.74% higher at 5.1187 after gaining 105 pips (0.21%) today. Today's close at 5.1187 marks the highest recorded closing price since January 26, 2017. Trading up to 193 pips lower after the open, the FX pair managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on Wednesday, GBPPLN gained 0.83% on the following trading day. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (GBPPLN as at Feb 14, 2020):
Friday's trading range has been 339 pips (0.66%), that's slightly below the last trading month's daily average range of 407 pips. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for GBPPLN.
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.
Prices are trading close to the key technical resistance level at 5.1286 (R1). After having been unable to move above 5.1287 in the prior session, the currency ran into sellers again around the same price level today, failing to move higher than 5.1226.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the nearby swing high at 5.1287 where further buy stops might get triggered. 2019's high at 5.1789 is within reach and we could see further upside momentum should the forex pair manage to break out beyond.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "6 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for GBP/PLN. Out of 17 times, GBPPLN closed higher 58.82% 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 64.71% with an average market move of 0.54%.
With five out of the seven Major FX Pairs closing lower today, the ones that stand out on the negative side are USDCAD losing -0.12% and EURUSD closing -0.08% lower. On the flipside the best performers have been USDCHF closing 0.28% higher and GBPUSD gaining 0.02%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been USDSEK surging 0.51% and EURSEK closing 0.43% higher. The worst performers of the day have been EURHUF tanking -0.65% and USDHUF closing -0.58% lower. Read more