PLNGBP finds buyers again around 0.1952
Polish Zloty/British Pound (PLNGBP) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 6th day in a row, PLNGBP ended the week -1.71% lower at 0.1954 after losing 4 pips (-0.2%) today. Today's close at 0.1954 marks the lowest recorded closing price since January 26, 2017. Trading 7 pips higher after the open, the FX pair was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on Wednesday, PLNGBP lost -0.81% on the following trading day. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (PLNGBP as at Feb 14, 2020):
Friday's trading range has been 13 pips (0.66%), that's below the last trading month's daily average range of 16 pips. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for PLNGBP.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar.
Prices are trading close to the key technical support level at 0.1950 (S1). After having been unable to move lower than 0.1950 in the prior session, PLN/GBP found buyers again around the same price level today at 0.1952.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling could accelerate should prices move below the close-by swing low at 0.1950 where further sell stops might get activated. 2019's low at 0.1931 is within reach and we could see further downside momentum should the forex pair break out beyond.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near low of period" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for PLN/GBP. Out of 449 times, PLNGBP closed higher 50.33% 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 50.11% with an average market move of 0.07%.