GBPSGD breaks back below 200-day moving average
British Pound/Singapore Dollar (GBPSGD) Technical Analysis Report for Apr 16, 2019 | by Techniquant Editorial Team
GBPSGD finished Tuesday at 1.7673 losing 51 pips (-0.29%). Closing below Monday's low at 1.7682, the FX pair confirmed its breakout through the prior session low after trading up to 23 pips below it intraday.
Daily Candlestick Chart (GBPSGD as at Apr 16, 2019):
Tuesday's trading range has been 76 pips (0.43%), that's far below the last trading month's daily average range of 142 pips. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for GBPSGD.
Three candlestick patterns are matching today's price action, the Bullish Hikkake Pattern which is known as bullish pattern and two bearish patterns, the Bearish Short Candle and the Black Candle. The last time a Bullish Hikkake Pattern showed up on March 20th, GBPSGD actually lost -0.48% on the following trading day.
The market closed back below the 200-day moving average at 1.7714. After having been unable to move above 1.7743 in the previous session, the pair ran into sellers again around the same price level today, failing to move higher than 1.7735.
Although GBP/SGD is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Buying could speed up should prices move above the close-by swing high at 1.7766 where further buy stops might get triggered. As prices are trading close to April's high at 1.7852, upside momentum could accelerate should the forex pair mark new highs for the month. Further selling might move prices lower should the market test March's nearby low at 1.7571.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Short Candle" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for GBP/SGD. Out of 42 times, GBPSGD closed higher 52.38% of the time on the next trading day after the market condition occurred.
With four out of the seven Major FX Pairs closing lower today, the ones that stand out on the negative side are GBPUSD losing -0.4% and EURUSD closing -0.2% lower. On the flipside the best performers have been USDCHF closing 0.38% higher and AUDUSD gaining 0.03%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been TRYJPY surging 0.57% and CADCHF closing 0.52% higher. The worst performers of the day have been EURTRY tanking -0.82% and USDTRY closing -0.63% lower. Read more