GBPSGD rockets, gaining 142 pips (0.83%) within a single day on low volume
British Pound/Singapore Dollar (GBPSGD) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
GBPSGD finished the month -0.93% lower at 1.7282 after surging 142 pips (0.83%) today on low volume. This is the biggest single-day gain in over two months. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 1.7252, the FX pair confirmed its breakout through the prior session high after trading up to 32 pips above it intraday.
Daily Candlestick Chart (GBPSGD as at Jun 30, 2020):
Tuesday's trading range has been 170 pips (0.99%), that's far above the last trading month's daily average range of 133 pips. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for GBPSGD.
Even with a weak opening the currency managed to close above the previous day's open and close, forming a bullish Engulfing Candle. The last time this candlestick pattern showed up on May 14th, GBPSGD actually lost -0.76% on the following trading day. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the eight 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. Though it is usually interpreted as bullish, it has actually shown to be bearish for GBP/SGD. Out of 475 times, GBPSGD closed lower 58.53% 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 55.16% with an average market move of -0.25%.
With four out of the seven Major FX Pairs closing higher today, the ones that stand out on the positive side are GBPUSD gaining 0.82% and NZDUSD closing 0.53% higher. On the flipside the worst performers have been USDCAD closing -0.62% lower and USDCHF losing -0.41%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been GBPZAR surging 1.31% and GBPJPY closing 1.16% higher. The worst performers of the day have been USDNOK tanking -1.51% and EURGBP closing -0.9% lower. Read more