GBPZAR dominated by bulls lifting the market higher throughout the day
British Pound/South African Rand (GBPZAR) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
GBPZAR ended Thursday at 21.1413 gaining 5451 pips (2.65%). Today's close at 21.1413 marks the highest recorded closing price since June 23, 2016. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 20.8381, GBP/ZAR confirmed its breakout through the previous session high after trading up to 3364 pips above it intraday.
Daily Candlestick Chart (GBPZAR as at Mar 26, 2020):
Thursday's trading range has been 8009 pips (3.89%), that's above the last trading month's daily average range of 6663 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 higher than usual for GBPZAR.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Last Engulfing Top Pattern.
Buyers managed to take out the key technical resistance level at 20.8971 (now S1), which is likely to act as support going forward. The last time this happened on March 20th, GBPZAR gained 0.33% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 21.6730, upside momentum might accelerate should the pair be able to break out to new highs for the year.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Last Engulfing Top Pattern" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for GBP/ZAR. Out of 58 times, GBPZAR closed higher 58.62% 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 60.34% with an average market move of 0.71%.
With four out of the seven Major FX Pairs closing higher today, the ones that stand out on the positive side are GBPUSD gaining 2.72% and NZDUSD closing 1.88% higher. On the flipside the worst performers have been USDCHF closing -1.43% lower and USDJPY losing -1.42%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been GBPHKD surging 2.72% and NZDHKD closing 1.87% higher. The worst performers of the day have been USDMXN tanking -4.12% and USDNOK closing -3.12% lower. Read more