USDGBP finds buyers again around 0.8063
US Dollar/British Pound (USDGBP) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
USDGBP ended the month -0.41% lower at 0.8064 after tanking 66 pips (-0.81%) today on low volume. The bears were in full control today, moving the market lower throughout the whole session. Closing below Monday's low at 0.8071, the forex pair confirmed its breakout through the previous session low after trading up to 8 pips below it intraday.
Daily Candlestick Chart (USDGBP as at Jun 30, 2020):
Tuesday's trading range has been 95 pips (1.17%), that's above the last trading month's daily average range of 81 pips. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for USDGBP.
Notwithstanding a strong opening the FX pair closed below the prior day's open and close, forming a bearish Engulfing Candle. The last time this candlestick pattern showed up on June 22nd, USDGBP lost -0.40% on the following trading day. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical support level at 0.8015 (S1). After having been unable to move lower than 0.8071 in the previous session, the market found buyers again around the same price level today at 0.8063.
USD/GBP shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Decisive Down Move" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for USD/GBP. Out of 302 times, USDGBP closed higher 52.65% 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 54.64% with an average market move of 0.36%.