PLNGBP unable to break through key resistance level
Polish Zloty/British Pound (PLNGBP) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, PLNGBP finished the month unchanged at 0.2037 after losing 14 pips (-0.68%) today. Closing below Thursday's low at 0.2041, the market confirmed its breakout through the previous session low after trading up to 8 pips below it intraday.
Daily Candlestick Chart (PLNGBP as at Jul 31, 2020):
Friday's trading range has been 25 pips (1.22%), that's above the last trading month's daily average range of 19 pips. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for PLNGBP.
Two candlestick patterns are matching today's price action, the Bullish Hikkake Pattern which is known as bullish pattern and one bearish pattern, the Black Candle. The last time a Bullish Hikkake Pattern showed up on July 16th, PLNGBP gained 0.45% on the following trading day.
After trading as low as 0.2033 during the day, the pair found support at the 20-day moving average at 0.2035. Unable to break through the key technical resistance level at 0.2058 (R1), PLN/GBP closed below it after spiking up to 0.2058 earlier during the day. The failure to close above the resistance could increase that levels significance going forward.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Hikkake Pattern" stand out. Its common bullish interpretation has been confirmed for PLN/GBP. Out of 89 times, PLNGBP closed higher 53.93% 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 six trading days, showing a win rate of 58.43% with an average market move of 0.11%.