GBPPLN closes within prior day's range after lackluster session
British Pound/Polish Zloty (GBPPLN) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
GBPPLN finished the month -0.75% lower at 4.9084 after gaining 330 pips (0.68%) today. The bulls were in full control today, moving the market higher throughout the whole session. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (GBPPLN as at Jun 30, 2020):
Tuesday's trading range has been 416 pips (0.85%), that's below the last trading month's daily average range of 509 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. After moving lower in the prior session, the FX pair managed to close higher but below the previous day's open, forming a bullish Harami Candle. Additionally, one bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on June 16th, GBPPLN gained 0.39% on the following trading day.
Prices are trading close to the key technical resistance level at 4.9109 (R1).
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and might now be heading back up towards the mean of the Bollinger Bands at 4.9431.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could accelerate should prices move above the close-by swing high at 4.9581 where further buy stops might get triggered. Selling could speed up should prices move below the nearby swing low at 4.8601 where further sell stops might get activated.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Decisive Up Move" stand out. Its common bullish interpretation has been confirmed for GBP/PLN. Out of 215 times, GBPPLN closed higher 50.23% 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 53.49% with an average market move of 0.03%.
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