GBPSGD rises to highest close since March 9th
British Pound/Singapore Dollar (GBPSGD) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving higher for the 10th day in a row, GBPSGD ended the month 4.07% higher at 1.7986 after gaining 16 pips (0.09%) today on high volume. Today's close at 1.7986 marks the highest recorded closing price since March 9th. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (GBPSGD as at Jul 31, 2020):
Friday's trading range has been 130 pips (0.72%), that's above the last trading month's daily average range of 113 pips. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for GBPSGD.
Two candlestick patterns are matching today's price action, the Bullish Spinning Top which is known as bullish pattern and one bearish pattern, the Shooting Star. The last time a Bullish Spinning Top showed up on Wednesday, GBPSGD gained 0.65% on the following trading day.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day while could signal a potential change in momentum that might lead to a correction back down towards the center of the Bollinger Bands at 1.7624.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "10 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for GBP/SGD. Out of 1 times, GBPSGD closed higher 100.00% 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 nine trading days, showing a win rate of 100.00% with an average market move of 0.06%.
With five out of the seven Major FX Pairs closing lower today, the ones that stand out on the negative side are NZDUSD losing -1.04% and AUDUSD closing -0.72% lower. On the flipside the best performers have been USDJPY closing 1.12% higher and USDCHF gaining 0.48%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been USDZAR surging 1.87% and GBPZAR closing 1.79% higher. The worst performers of the day have been NZDCAD tanking -1.15% and NZDHKD closing -1.05% lower. Read more