USDGBP closes higher for the 3rd day in a row
US Dollar/British Pound (USDGBP) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, USDGBP finished the week -0.51% lower at 0.8220 after gaining 38 pips (0.46%) today on low volume. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 0.8206, the pair confirmed its breakout through the previous session high after trading up to 16 pips above it intraday.
Daily Candlestick Chart (USDGBP as at May 22, 2020):
Friday's trading range has been 48 pips (0.59%), that's far below the last trading month's daily average range of 75 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 USDGBP.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns. The last time a White Candle showed up on May 15th, USDGBP actually lost -0.75% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the nearby swing high at 0.8281 where further buy stops might get activated.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Decisive Up Move" stand out. Its common bullish interpretation has been confirmed for USD/GBP. Out of 295 times, USDGBP closed higher 54.92% 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 50.85% with an average market move of 0.16%.