GBPPLN finds buyers around 4.9119 for the third day in a row
British Pound/Polish Zloty (GBPPLN) Technical Analysis Report for Jun 01, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, GBPPLN finished Monday at 4.9352 losing 105 pips (-0.21%) on high volume. 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 Jun 01, 2020):
Monday's trading range has been 453 pips (0.92%), that's slightly above the last trading month's daily average range of 443 pips. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for GBPPLN. Prices continued to consolidate within a tight trading range between 4.9109 and 4.9632 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, one bearish candlestick pattern matches today's price action, the Bearish Spinning Top. The last time a Bearish Spinning Top showed up on May 14th, GBPPLN lost -0.93% on the following trading day.
Prices are trading close to the key technical resistance level at 4.9632 (R1). The FX pair found buyers again today around 4.9119 for the third trading day in a row after having found demand at 4.9109 in the prior session and at 4.9117 two days ago.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could accelerate should prices move above the nearby swing high at 4.9632 where further buy stops might get triggered. Selling could speed up should prices move below the close-by swing low at 4.9109 where further sell stops might get activated.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) below 20" stand out. Its common bullish interpretation has been confirmed for GBP/PLN. Out of 300 times, GBPPLN closed higher 53.67% 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 56.00% with an average market move of 0.35%.
With four out of the seven Major FX Pairs closing higher today, the ones that stand out on the positive side are AUDUSD gaining 1.93% and NZDUSD closing 1.43% higher. On the flipside the worst performers have been USDCAD closing -1.43% lower and USDJPY losing -0.21%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been AUDHKD surging 1.93% and AUDCHF closing 1.9% higher. The worst performers of the day have been EURAUD tanking -1.65% and USDPLN closing -1.36% lower. Read more