ZARGBP dominated by bears dragging the market lower throughout the day


South African Rand/British Pound (ZARGBP) Technical Analysis Report for Sep 23, 2020 | by Techniquant Editorial Team

Highlights

ZARGBP breaks below key technical support level
ZARGBP dominated by bears dragging the market lower throughout the day
ZARGBP finds support at 100-day moving average
ZARGBP breaks below Tuesday's low

Overview

ZARGBP finished Wednesday at 0.0460 tanking 8 pips (-1.71%). The bears were in full control today, moving the market lower throughout the whole session. Closing below Tuesday's low at 0.0462, the pair confirmed its breakout through the prior session low after trading up to 3 pips below it intraday.

Daily Candlestick Chart (ZARGBP as at Sep 23, 2020):

Daily technical analysis candlestick chart for South African Rand/British Pound (ZARGBP) as at Sep 23, 2020

Wednesday's trading range has been 10 pips (2.14%), that's above the last trading month's daily average range of 8 pips. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for ZARGBP.

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 August 10th, ZARGBP gained 1.39% on the following trading day.

After trading as low as 0.0459 during the day, the FX pair found support at the 100-day moving average at 0.0459. Prices broke below the key technical support level at 0.0461 (now R1), which is likely to act as resistance going forward.

Although still in a long-term uptrend, the short and medium-term trends both turned bearish already.

Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Bounce off SMA 100" stand out. Its common bullish interpretation has been confirmed for ZAR/GBP. Out of 65 times, ZARGBP closed higher 56.92% 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 56.92% with an average market move of 0.67%.


Market Conditions for ZARGBP as at Sep 23, 2020

Loading Market Conditions for ZARGBP (South African Rand/British Pound)...
Looking for GBPZAR instead? Click here
Trending Assets

Upgrade your trading!

Get the stats behind the charts

Find out what happened when South African Rand/British Pound traded like this in the past. See the odds for each technical pattern with expected gain and loss.

Find out more
Top Movers
You have free reports remaining. Subscribe for unlimited access...SUBSCRIBELOGINGO!