GBPUSD dominated by bulls lifting the market higher throughout the day
British Pound/US Dollar (GBPUSD) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
GBPUSD ended the month 0.41% higher at 1.2401 after gaining 101 pips (0.82%) today on low volume. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 1.2390, the market confirmed its breakout through the previous session high after trading up to 13 pips above it intraday.
Daily Candlestick Chart (GBPUSD as at Jun 30, 2020):
Tuesday's trading range has been 145 pips (1.18%), that's above the last trading month's daily average range of 127 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 slightly lower than usual for GBPUSD.
Regardless of a weak opening GBP/USD managed to close above the prior day's open and close, forming a bullish Engulfing Candle. The last time this candlestick pattern showed up on June 22nd, GBPUSD gained 0.41% on the following trading day. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
After trading down to 1.2258 earlier during the day, the pair bounced off the key technical support level at 1.2266 (S1). The failure to close below the support could increase that levels importance as support going forward. Prices are trading close to the key technical resistance level at 1.2476 (R1). After having been unable to move lower than 1.2252 in the previous session, the currency found buyers again around the same price level today at 1.2258.
The FX pair shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
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 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 54.43% 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 0.53% and AUDUSD gaining 0.52%. On the flipside the worst performers have been USDCAD closing -0.62% lower and USDCHF losing -0.41%. Looking at the Minor FX Pairs and Crosses, the winners of the day have been GBPZAR surging 1.31% and GBPJPY closing 1.16% higher. The worst performers of the day have been USDNOK tanking -1.51% and EURGBP closing -0.9% lower. Read more