GBPUSD closes higher for the 3rd day in a row
British Pound/US Dollar (GBPUSD) Technical Analysis Report for Jul 12, 2019 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, GBPUSD ended the week 0.39% higher at 1.2575 after gaining 49 pips (0.39%) today. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 1.2571, the Cable confirmed its breakout through the previous session high after trading up to 9 pips above it intraday.
Daily Candlestick Chart (GBPUSD as at Jul 12, 2019):
Friday's trading range has been 60 pips (0.48%), that's slightly below the last trading month's daily average range of 73 pips. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for GBPUSD.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 1.2557 (now S1), which is likely to act as support going forward. The last time this happened on June 19th, GBPUSD gained 0.49% on the following trading day. After having been unable to move above 1.2571 in the prior session, the market ran into sellers again around the same price level today, failing to move higher than 1.2580.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Decisive Up Move" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for GBP/USD. Out of 300 times, GBPUSD closed lower 53.67% 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 55.00% with an average market move of -0.31%.
With three of the other Major FX Pairs closing higher and three closing lower today, the winners of the day are AUDUSD surging 0.66% and NZDUSD gaining 0.45%. On the flipside the worst performers have been USDCHF closing -0.61% lower and USDJPY losing -0.54%. Looking at the Minor FX Pairs and Crosses, the winners of the day have been USDTRY surging 0.81% and EURTRY closing 0.76% higher. The worst performers of the day have been TRYJPY tanking -1.15% and SGDCHF closing -0.62% lower. Read more