GBPUSD runs into sellers again around 1.3108
British Pound/US Dollar (GBPUSD) Technical Analysis Report for Aug 04, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, GBPUSD ended Tuesday at 1.3071 edging lower 4 pips (-0.03%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (GBPUSD as at Aug 04, 2020):
Tuesday's trading range has been 127 pips (0.97%), that's above the last trading month's daily average range of 106 pips. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for GBPUSD.
Three candlestick patterns are matching today's price action, the Hanging Man and the Northern Doji which are both known as bearish patterns and one neutral pattern, the Doji. The last time a Doji showed up on July 22nd, GBPUSD gained 0.05% on the following trading day.
After having been unable to move above 1.3113 in the previous session, the forex pair ran into sellers again around the same price level today, missing to move higher than 1.3108.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the nearby swing high at 1.3170 where further buy stops might get activated. With prices trading close to this year's high at 1.3267, upside momentum could accelerate should GBP/USD be able to break out to new highs for the year.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Hanging Man" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for GBP/USD. Out of 60 times, GBPUSD closed higher 65.00% 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 50.00% with an average market move of 0.05%.
With three of the other Major FX Pairs closing higher and three closing lower today, the winners of the day are AUDUSD surging 0.53% and EURUSD gaining 0.35%. On the flipside the worst performers have been USDCAD closing -0.55% lower and USDCHF losing -0.49%. Looking at the Minor FX Pairs and Crosses, the winners of the day have been CHFZAR surging 1.54% and EURZAR closing 1.39% higher. The worst performers of the day have been ZARJPY tanking -1.14% and USDCZK closing -0.92% lower. Read more