GBPSGD enters Golden Cross for the first time since May 19th
British Pound/Singapore Dollar (GBPSGD) Technical Analysis Report for Jun 01, 2020 | by Techniquant Editorial Team
GBPSGD ended Monday at 1.7580 surging 135 pips (0.77%). This is the biggest single-day gain in over a month. The last time we've seen such an unusually strong single-day gain on April 30th, GBPSGD actually lost -0.44% on the following trading day. Today's close at 1.7580 marks the highest recorded closing price since May 5th. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Friday's high at 1.7510, GBP/SGD confirmed its breakout through the previous session high after trading up to 90 pips above it intraday.
Daily Candlestick Chart (GBPSGD as at Jun 01, 2020):
Monday's trading range has been 189 pips (1.08%), that's far above the last trading month's daily average range of 126 pips. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for GBPSGD.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Last Engulfing Top Pattern.
The FX pair managed to close above the 200-day moving average at 1.7535 for the first time since May 8th.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term. With its 50-day moving average crossing above its 200-day moving average, the pair has entered a so-called "Golden Cross" for the first time since May 19th. Showing increasing upward momentum in the short and medium-term the "Golden Cross" is known to indicate a potential bull market on the horizon.
Further buying could move prices higher should the market test May's nearby high at 1.7795.
Among the 13 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 476 times, GBPSGD closed lower 58.19% 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 54.83% 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 AUDUSD gaining 1.93% and NZDUSD closing 1.43% higher. On the flipside the worst performers have been USDCAD closing -1.43% lower and USDJPY losing -0.21%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been AUDHKD surging 1.93% and AUDCHF closing 1.9% higher. The worst performers of the day have been EURAUD tanking -1.65% and USDPLN closing -1.36% lower. Read more