GBPPLN closes above its opening price after recovering from early selling pressure


British Pound/Polish Zloty (GBPPLN) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team

Highlights

GBPPLN closes above its opening price after recovering from early selling pressure
GBPPLN finds buyers at key support level
GBPPLN finds buyers again around 4.9384
GBPPLN stuck within tight trading range
GBPPLN closes within previous day's range

Overview

GBPPLN finished Thursday at 5.0074 gaining 151 pips (0.3%). Trading up to 539 pips lower after the open, the forex pair managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on Monday, GBPPLN gained 1.22% 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 Mar 26, 2020):

Daily technical analysis candlestick chart for British Pound/Polish Zloty (GBPPLN) as at Mar 26, 2020

Thursday's trading range has been 856 pips (1.71%), that's slightly below the last trading month's daily average range of 1034 pips. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for GBPPLN. Prices continued to consolidate within a tight trading range between 4.9154 and 5.0626 where it has been caught now for the last three trading days.

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 Spinning Top which is known as bullish pattern and one bearish pattern, the Hanging Man.

After trading down to 4.9384 earlier during the day, GBP/PLN bounced off the key technical support level at 4.9403 (S2). The failure to close below the support might increase that levels significance as support going forward. Prices are trading close to the key technical resistance level at 5.0434 (R1). After having been unable to move lower than 4.9362 in the prior session, the currency found buyers again around the same price level today at 4.9384.

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 5.0626 where further buy stops might get activated. With prices trading close to this year's high at 5.1605, upside momentum could speed up should the market be able to break out to new highs for the year.

Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Hanging Man" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for GBP/PLN. Out of 42 times, GBPPLN closed higher 71.43% 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 six trading days, showing a win rate of 57.14% with an average market move of 0.17%.

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 GBPHKD surging 2.72% and GBPZAR closing 2.65% higher. The worst performers of the day have been USDMXN tanking -4.12% and USDNOK closing -3.12% lower. Read more


Market Conditions for GBPPLN as at Mar 26, 2020

Loading Market Conditions for GBPPLN (British Pound/Polish Zloty)...
Looking for PLNGBP instead? Click here
Trending Assets

Upgrade your trading!

Get the stats behind the charts

Find out what happened when British Pound/Polish Zloty traded like this in the past. See the odds for each technical pattern with expected gain and loss.

Find out more
Top Movers
You have free reports remaining. Subscribe for unlimited access...SUBSCRIBELOGINGO!