GBPSGD pushes through Thursday's high
British Pound/Singapore Dollar (GBPSGD) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 5th day in a row, GBPSGD finished the week 1.46% higher at 1.8165 after gaining 41 pips (0.23%) today on low volume. Today's close at 1.8165 marks the highest recorded closing price since October 11, 2018. Closing above Thursday's high at 1.8153, the FX pair confirmed its breakout through the prior session high after trading up to 23 pips above it intraday.
Daily Candlestick Chart (GBPSGD as at Feb 14, 2020):
Friday's trading range has been 82 pips (0.45%), that's below the last trading month's daily average range of 128 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 notably higher than usual for GBPSGD.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns. The last time a Bullish Short Candle showed up on January 16th, GBPSGD actually lost -0.51% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
2019's high at 1.8294 is within reach and we might see further upside momentum should the forex pair manage to break out beyond.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "5 Consecutive Higher Closes" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for GBP/SGD. Out of 32 times, GBPSGD closed lower 53.13% 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 62.50% with an average market move of -0.15%.
With five out of the seven Major FX Pairs closing lower today, the ones that stand out on the negative side are USDCAD losing -0.12% and EURUSD closing -0.08% lower. On the flipside the best performers have been USDCHF closing 0.28% higher and GBPUSD gaining 0.02%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been USDSEK surging 0.51% and EURSEK closing 0.43% higher. The worst performers of the day have been EURHUF tanking -0.65% and USDHUF closing -0.58% lower. Read more