GBPSGD runs into sellers again around 1.7599
British Pound/Singapore Dollar (GBPSGD) Technical Analysis Report for Jul 13, 2020 | by Techniquant Editorial Team
GBPSGD finished Monday at 1.7455 losing 101 pips (-0.58%). The bears were in full control today, moving the market lower throughout the whole session. Closing below Friday's low at 1.7526, GBP/SGD confirmed its breakout through the previous session low after trading up to 78 pips below it intraday.
Daily Candlestick Chart (GBPSGD as at Jul 13, 2020):
Monday's trading range has been 151 pips (0.86%), that's above the last trading month's daily average range of 124 pips. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for GBPSGD.
In spite of a strong opening the currency closed below the prior day's open and close, forming a bearish Engulfing Candle. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical support level at 1.7426 (S1). The market closed back below the 100-day moving average at 1.7533. After having been unable to move above 1.7607 in the previous session, the pair ran into sellers again around the same price level today, missing to move higher than 1.7599. The last time this happened on July 6th, GBPSGD actually gained 0.64% on the following trading day.
Though the FX pair is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Selling might accelerate should prices move below the close-by swing low at 1.7350 where further sell stops could get activated.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Engulfing Candle" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for GBP/SGD. Out of 124 times, GBPSGD closed higher 54.03% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after five trading days, showing a win rate of 55.65% with an average market move of -0.02%.
With four out of the seven Major FX Pairs closing higher today, the ones that stand out on the positive side are EURUSD gaining 0.38% and USDJPY closing 0.35% higher. On the flipside the worst performers have been GBPUSD closing -0.54% lower and NZDUSD losing -0.52%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been USDMXN surging 1.42% and EURGBP closing 0.93% higher. The worst performers of the day have been GBPHKD tanking -0.56% and NZDSGD closing -0.55% lower. Read more