GBPSGD breaks back above 200-day moving average
British Pound/Singapore Dollar (GBPSGD) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, GBPSGD ended Thursday at 1.7466 surging 270 pips (1.57%). This is the biggest single-day gain in over a year. Closing above Wednesday's high at 1.7302, the currency confirmed its breakout through the prior session high after trading up to 195 pips above it intraday.
Daily Candlestick Chart (GBPSGD as at Mar 26, 2020):
Thursday's trading range has been 424 pips (2.47%), that's above the last trading month's daily average range of 331 pips. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for GBPSGD.
One bullish candlestick pattern matches today's price action, the White Candle.
The forex pair managed to close back above the 200-day moving average at 1.7389 for the first time since March 16th. When this moving average was crossed above the last time on March 16th, GBPSGD actually lost -1.18% on the following trading day. After spiking up to 1.7497 during the day, the market found resistance at the 20-day moving average at 1.7487.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near high of period" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for GBP/SGD. Out of 479 times, GBPSGD closed lower 57.83% 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 55.11% 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 2.72% and NZDUSD closing 1.88% higher. On the flipside the worst performers have been USDCHF closing -1.43% lower and USDJPY losing -1.42%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been GBPHKD surging 2.72% and GBPZAR closing 2.65% higher. The worst performers of the day have been USDMXN tanking -4.12% and USDNOK closing -3.12% lower. Read more