GBPUSD runs into sellers again around 1.3063
British Pound/US Dollar (GBPUSD) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 5th day in a row, GBPUSD ended the week 1.24% higher at 1.3046 after gaining 2 pips (0.02%) today. Trading up to 41 pips lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (GBPUSD as at Feb 14, 2020):
Friday's trading range has been 62 pips (0.48%), that's below the last trading month's daily average range of 92 pips. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for GBPUSD.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, one bullish candlestick pattern matches today's price action, the Bullish Spinning Top. The last time a Bullish Spinning Top showed up on December 24, 2019, GBPUSD gained 0.39% on the following trading day.
Unable to break through the key technical resistance level at 1.3051 (R1), the Cable closed below it after spiking up to 1.3063 earlier during the day. The failure to close above the resistance might increase that levels significance going forward. After having been unable to move above 1.3070 in the previous session, GBP/USD ran into sellers again around the same price level today, missing to move higher than 1.3063.
Though still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Buying could speed up should prices move above the nearby swing high at 1.3070 where further buy stops might get activated. As prices are trading close to February's high at 1.3184, upside momentum could accelerate should the FX pair mark new highs for the month.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Spinning Top" stand out. Its common bullish interpretation has been confirmed for GBP/USD. Out of 212 times, GBPUSD closed higher 57.08% 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 53.30% with an average market move of 0.12%.
With five out of the other six Major FX Pairs closing lower today, the ones that stand out on the negative side are USDCAD losing -0.12% and EURUSD closing -0.08% lower. On the flipside the best performer has been USDCHF closing 0.28% higher. Looking at the Minor FX Pairs and Crosses, the winners of the day have been USDSEK surging 0.51% and EURSEK closing 0.43% higher. The worst performers of the day have been EURHUF tanking -0.65% and USDHUF closing -0.58% lower. Read more