GBPUSD closes higher for the 3rd day in a row
British Pound/US Dollar (GBPUSD) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, GBPUSD finished Wednesday at 1.2967 gaining 78 pips (0.61%) on high volume. Closing above Tuesday's high at 1.2926, the forex pair confirmed its breakout through the prior session high after trading up to 81 pips above it intraday.
Daily Candlestick Chart (GBPUSD as at Sep 16, 2020):
Wednesday's trading range has been 132 pips (1.02%), that's slightly below the last trading month's daily average range of 139 pips. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for GBPUSD.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on August 28th, GBPUSD gained 0.13% on the following trading day.
After spiking up to 1.3007 during the day, the Cable found resistance at the 50-day moving average at 1.2986.
While GBP/USD is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Buying could speed up should prices move above the nearby swing high at 1.3036 where further buy stops might get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Bounce off SMA 50" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for GBP/USD. Out of 66 times, GBPUSD closed higher 56.06% 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 63.64% with an average market move of 0.51%.
With three of the other Major FX Pairs closing higher and three closing lower today, the winners of the day are NZDUSD surging 0.27% and USDCHF gaining 0.14%. On the flipside the worst performers have been USDJPY closing -0.47% lower and EURUSD losing -0.25%. Looking at the Minor FX Pairs and Crosses, the winners of the day have been GBPPLN surging 0.81% and ZARJPY closing 0.78% higher. The worst performers of the day have been EURZAR tanking -1.42% and CHFZAR closing -1.28% lower. Read more