GBPUSD dominated by bulls lifting the market higher throughout the day
British Pound/US Dollar (GBPUSD) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, GBPUSD finished Thursday at 1.2203 surging 323 pips (2.72%). This is the biggest single-day gain in over three years. The last time we've seen such an unusually strong single-day gain on January 31st, GBPUSD actually lost -1.58% on the following trading day. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 1.1974, the FX pair confirmed its breakout through the previous session high after trading up to 255 pips above it intraday.
Daily Candlestick Chart (GBPUSD as at Mar 26, 2020):
Thursday's trading range has been 452 pips (3.8%), that's far above the last trading month's daily average range of 271 pips. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly 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 1.1935 (now S1), which is likely to act as support going forward.
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. Though it is usually interpreted as bullish, it has actually shown to be bearish for GBP/USD. Out of 305 times, GBPUSD closed lower 53.77% 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 53.44% with an average market move of -0.33%.
With three of the other Major FX Pairs closing higher and three closing lower today, the winners of the day are NZDUSD surging 1.88% and AUDUSD gaining 1.75%. On the flipside the worst performers have been USDCHF closing -1.43% lower and USDJPY losing -1.42%. Looking at the Minor FX Pairs and Crosses, the winners of the day have been GBPHKD surging 2.72% and GBPZAR closing 2.65% higher. The worst performers of the day have been USDMXN tanking -4.12% and USDNOK closing -3.12% lower. Read more