GBPZAR pops to highest close since May 19th
British Pound/South African Rand (GBPZAR) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, GBPZAR ended the month 3.8% higher at 22.3386 after surging 3924 pips (1.79%) today on high volume. Today's close at 22.3386 marks the highest recorded closing price since May 19th. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 22.1294, GBP/ZAR confirmed its breakout through the previous session high after trading up to 3228 pips above it intraday.
Daily Candlestick Chart (GBPZAR as at Jul 31, 2020):
Friday's trading range has been 5678 pips (2.59%), that's far above the last trading month's daily average range of 3076 pips. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for GBPZAR.
One bullish candlestick pattern matches today's price action, the White Candle.
Prices are trading close to the key technical resistance level at 22.5064 (R1).
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day although might signal a potential change in momentum that could lead to a correction back down towards the center of the Bollinger Bands at 21.2656.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(14) above 70" stand out. Its common bearish interpretation has been confirmed for GBP/ZAR. Out of 53 times, GBPZAR closed lower 52.83% 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 56.60% with an average market move of -0.34%.
With five out of the seven Major FX Pairs closing lower today, the ones that stand out on the negative side are NZDUSD losing -1.04% and AUDUSD closing -0.72% lower. On the flipside the best performers have been USDJPY closing 1.12% higher and USDCHF gaining 0.48%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been USDZAR surging 1.87% and TRYJPY closing 1.54% higher. The worst performers of the day have been NZDCAD tanking -1.15% and NZDHKD closing -1.05% lower. Read more