GBPUSD breaks below Friday's low
British Pound/US Dollar (GBPUSD) Technical Analysis Report for Feb 11, 2019 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, GBPUSD ended Monday at 1.2861 losing 81 pips (-0.63%) on low volume. Today's close at 1.2861 marks the lowest recorded closing price since January 11th. The bears were in full control today, moving the market lower throughout the whole session. Closing below Friday's low at 1.2922, the pair confirmed its breakout through the previous session low after trading up to 77 pips below it intraday.
Daily Candlestick Chart (GBPUSD as at Feb 11, 2019):
Monday's trading range has been 95 pips (0.73%), that's slightly below the last trading month's daily average range of 110 pips. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for GBPUSD.
Two candlestick patterns are matching today's price action, the Bullish Hikkake Pattern which is known as bullish pattern and one bearish pattern, the Black Candle. The last time a Bullish Hikkake Pattern showed up on January 29th, GBPUSD gained 0.38% on the following trading day.
Prices are trading close to the key technical support level at 1.2827 (S1). The Cable closed below the 100-day moving average at 1.2895 for the first time since January 21st.
The currency shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Hikkake Pattern" stand out. Its common bullish interpretation has been confirmed for GBP/USD. Out of 124 times, GBPUSD closed higher 54.84% 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 59.68% with an average market move of 0.38%.
With three of the other Major FX Pairs closing higher and three closing lower today, the winners of the day are USDJPY surging 0.57% and USDCHF gaining 0.37%. On the flipside the worst performers have been EURUSD closing -0.41% lower and AUDUSD losing -0.37%. Looking at the Minor FX Pairs and Crosses, the winners of the day have been USDZAR surging 1.38% and USDMXN closing 1.17% higher. The worst performers of the day have been ZARJPY tanking -0.74% and GBPHKD closing -0.63% lower. Read more