GBPPLN closes higher for the 2nd day in a row
British Pound/Polish Zloty (GBPPLN) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, GBPPLN ended the month 0.01% higher at 4.9091 after gaining 346 pips (0.71%) today. Closing above Thursday's high at 4.8990, the FX pair confirmed its breakout through the previous session high after trading up to 197 pips above it intraday.
Daily Candlestick Chart (GBPPLN as at Jul 31, 2020):
Friday's trading range has been 603 pips (1.24%), that's above the last trading month's daily average range of 448 pips. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for GBPPLN.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern. The last time a Bearish Hikkake Pattern showed up on July 16th, GBPPLN lost -0.46% on the following trading day.
After trading down to 4.8584 earlier during the day, the forex pair bounced off the key technical support level at 4.8601 (S1). The failure to close below the support could increase that levels significance as support going forward. After spiking up to 4.9187 during the day, GBP/PLN found resistance at the 20-day moving average at 4.9140.
Although still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Hikkake Pattern" stand out. Its common bearish interpretation has been confirmed for GBP/PLN. Out of 123 times, GBPPLN closed lower 56.91% 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 six trading days, showing a win rate of 56.10% with an average market move of -0.06%.
With five out of the seven Major FX Pairs closing lower today, the ones that stand out on the negative side are NZDUSD losing -1.04% and AUDUSD closing -0.72% lower. On the flipside the best performers have been USDJPY closing 1.12% higher and USDCHF gaining 0.48%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been USDZAR surging 1.87% and GBPZAR closing 1.79% higher. The worst performers of the day have been NZDCAD tanking -1.15% and NZDHKD closing -1.05% lower. Read more