GBPUSD closes lower for the 2nd day in a row
British Pound/US Dollar (GBPUSD) Technical Analysis Report for Jan 24, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, GBPUSD finished the week 0.48% higher at 1.3072 after losing 54 pips (-0.41%) today on high volume. Trading 51 pips higher after the open, the currency was unable to hold its gains as the bears took control ending the day below its opening price. Closing below Thursday's low at 1.3097, the FX pair confirmed its breakout through the previous session low after trading up to 40 pips below it intraday.
Daily Candlestick Chart (GBPUSD as at Jan 24, 2020):
Friday's trading range has been 118 pips (0.9%), that's above the last trading month's daily average range of 98 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 strongly lower than usual for GBPUSD.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bearish Outside Bar. The last time this happened on January 17th, GBPUSD actually gained 0.01% on the following trading day.
The Cable closed back below the 20-day moving average at 1.3086.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 1.3267, upside momentum might speed up should the market be able to break out to new highs for the year. With prices trading close to this year's low at 1.2955, downside momentum could accelerate should the pair break out to new lows for the year.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near low of period" stand out. Its common bearish interpretation has been confirmed for GBP/USD. Out of 550 times, GBPUSD closed lower 54.55% 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 50.91% with an average market move of -0.05%.
With four out of the other six Major FX Pairs closing lower today, the ones that stand out on the negative side are AUDUSD losing -0.34% and EURUSD closing -0.28% lower. On the flipside the best performers have been USDCHF closing 0.23% higher and USDCAD gaining 0.14%. Looking at the Minor FX Pairs and Crosses, the winners of the day have been USDNOK surging 0.57% and USDPLN closing 0.53% higher. The worst performers of the day have been GBPJPY tanking -0.6% and AUDJPY closing -0.53% lower. Read more