GBPPLN closes higher for the 3rd day in a row
British Pound/Polish Zloty (GBPPLN) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, GBPPLN finished Wednesday at 4.8817 gaining 391 pips (0.81%). Closing above Tuesday's high at 4.8533, GBP/PLN confirmed its breakout through the prior session high after trading up to 366 pips above it intraday.
Daily Candlestick Chart (GBPPLN as at Sep 16, 2020):
Wednesday's trading range has been 609 pips (1.26%), that's above the last trading month's daily average range of 494 pips. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for GBPPLN.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 4.8601 (now S1), which is likely to act as support going forward. The last time this happened on Monday, GBPPLN gained 0.56% on the following trading day. Prices are trading close to the key technical resistance level at 4.9036 (R1).
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Higher Closes" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for GBP/PLN. Out of 162 times, GBPPLN closed lower 52.47% 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 10 trading days, showing a win rate of 56.17% with an average market move of -0.23%.
With four out of the seven Major FX Pairs closing higher today, the ones that stand out on the positive side are GBPUSD gaining 0.61% and NZDUSD closing 0.27% higher. On the flipside the worst performers have been USDJPY closing -0.47% lower and EURUSD losing -0.25%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been ZARJPY surging 0.78% and GBPCHF closing 0.75% higher. The worst performers of the day have been EURZAR tanking -1.42% and CHFZAR closing -1.28% lower. Read more