GBPZAR pushes through Monday's high
British Pound/South African Rand (GBPZAR) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
GBPZAR finished the month -0.67% lower at 21.5200 after gaining 2775 pips (1.31%) today. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 21.4605, the market confirmed its breakout through the previous session high after trading up to 1043 pips above it intraday.
Daily Candlestick Chart (GBPZAR as at Jun 30, 2020):
Tuesday's trading range has been 3545 pips (1.67%), that's slightly above the last trading month's daily average range of 3242 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 lower than usual for GBPZAR.
Regardless of a weak opening the FX pair managed to close above the prior day's open and close, forming a bullish Engulfing Candle. Additionally, one bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on June 11th, GBPZAR actually lost -1.23% on the following trading day.
The forex pair managed to close back above the 20-day moving average at 21.4260 for the first time since June 24th. After spiking up to 21.5648 during the day, the pair found resistance at the 100-day moving average at 21.5615. After having been unable to move lower than 21.1657 in the previous session, GBP/ZAR found buyers again around the same price level today at 21.2103.
While still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Buying might speed up should prices move above the close-by swing high at 21.7522 where further buy stops could get triggered. As prices are trading close to June's high at 21.8940, upside momentum might accelerate should the currency mark new highs for the month.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Bounce off SMA 100" stand out. Its common bearish interpretation has been confirmed for GBP/ZAR. Out of 63 times, GBPZAR closed lower 63.49% 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 60.32% with an average market move of -0.60%.
With four out of the seven Major FX Pairs closing higher today, the ones that stand out on the positive side are GBPUSD gaining 0.82% and NZDUSD closing 0.53% higher. On the flipside the worst performers have been USDCAD closing -0.62% lower and USDCHF losing -0.41%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been GBPJPY surging 1.16% and CADJPY closing 0.97% higher. The worst performers of the day have been USDNOK tanking -1.51% and EURGBP closing -0.9% lower. Read more