SGDGBP closes lower for the 10th day in a row
Singapore Dollar/British Pound (SGDGBP) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 10th day in a row, SGDGBP finished the month -3.91% lower at 0.5560 after losing 5 pips (-0.09%) today on high volume. Today's close at 0.5560 marks the lowest recorded closing price since March 9th. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (SGDGBP as at Jul 31, 2020):
Friday's trading range has been 40 pips (0.72%), that's slightly above the last trading month's daily average range of 36 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 SGDGBP.
Two candlestick patterns are matching today's price action, the Takuri Line which is known as bullish pattern and one bearish pattern, the Bearish Spinning Top. The last time a Bearish Spinning Top showed up on Wednesday, SGDGBP lost -0.64% on the following trading day.
With another close below the lower Bollinger Band, prices are confirming their strong downward momentum in the short-term. A rally back into the Bollinger Band on the next trading day though might signal a potential change in momentum that could lead to a correction back up towards the center of the Bollinger Bands at 0.5674.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Takuri Line" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for SGD/GBP. Out of 51 times, SGDGBP closed lower 58.82% of the time on the next trading day after the market condition occurred.