SGDGBP closes lower for the 2nd day in a row
Singapore Dollar/British Pound (SGDGBP) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, SGDGBP finished the week -0.33% lower at 0.5768 after edging lower 4 pips (-0.07%) today. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (SGDGBP as at May 22, 2020):
Friday's trading range has been 33 pips (0.57%), that's below the last trading month's daily average range of 42 pips. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for SGDGBP. Prices continued to consolidate within a tight trading range between 0.5746 and 0.5806 where it has been caught now for the whole last trading week.
Two candlestick patterns are matching today's price action, the Bearish Spinning Top and the Hanging Man which are both known as bearish patterns. The last time a Hanging Man showed up on December 20, 2019, SGDGBP actually gained 0.44% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the close-by swing high at 0.5799 where further buy stops could get activated.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for SGD/GBP. Out of 313 times, SGDGBP closed higher 53.35% 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 49.84% with an average market move of 0.17%.