GBPSGD pushes through Tuesday's high
British Pound/Singapore Dollar (GBPSGD) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, GBPSGD finished Wednesday at 1.7618 gaining 76 pips (0.43%). Closing above Tuesday's high at 1.7570, the pair confirmed its breakout through the previous session high after trading up to 82 pips above it intraday.
Daily Candlestick Chart (GBPSGD as at Sep 16, 2020):
Wednesday's trading range has been 151 pips (0.86%), that's slightly above the last trading month's daily average range of 147 pips. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for GBPSGD.
One bearish candlestick pattern matches today's price action, the Bearish Hikkake Pattern. The last time a Bearish Hikkake Pattern showed up on August 11th, GBPSGD lost -0.22% on the following trading day.
After spiking up to 1.7652 during the day, the FX pair found resistance at the 100-day moving average at 1.7644.
Although the market is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Bounce off SMA 100" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for GBP/SGD. Out of 77 times, GBPSGD closed higher 61.04% 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 10 trading days, showing a win rate of 53.25% with an average market move of 0.12%.
With four out of the seven Major FX Pairs closing higher today, the ones that stand out on the positive side are GBPUSD gaining 0.61% and NZDUSD closing 0.27% higher. On the flipside the worst performers have been USDJPY closing -0.47% lower and EURUSD losing -0.25%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been GBPPLN surging 0.81% and ZARJPY closing 0.78% higher. The worst performers of the day have been EURZAR tanking -1.42% and CHFZAR closing -1.28% lower. Read more