GBP/HKD Currency Pair Forecast

GBP/HKD currency pair price up 0.0815% on Friday
(Updated on May 31, 2024)

GBPHKD Signals & Forecast

The GBP/HKD currency pair holds buy signals from both short and long-term Moving Averages giving a positive forecast for the stock. Also, there is a general buy signal from the relation between the two signals where the short-term average is above the long-term average. On corrections down, there will be some support from the lines at HK$9.96 and HK$9.84. A breakdown below any of these levels will issue sell signals. Furthermore, there is a buy signal from the 3 month Moving Average Convergence Divergence (MACD). GBP/HKD has increased volume and follows the last lift in the price. This is considered to be a technical positive sign as volume should follow the price-formation. Higher liquidity also reduces the general risk. Some negative signals were issued as well, and these may have some influence on the near short-term development. A sell signal was issued from a pivot top point on Monday, May 27, 2024, and so far it has fallen -0.0947%. Further fall is indicated until a new bottom pivot has been found. The currency pair had a Golden Star Signal on Tuesday, May 14, 2024 in the short-term chart.

Golden Star Signal is when the short-term moving average, the long-term moving average, and price line meet in a special combination. This combination is very rare and often followed by long and strong gains for the currency pair in question.

Support, Risk & Stop-loss for GBP/HKD currency pair

GBP/HKD finds support from accumulated volume at HK$9.94 and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested.

In general the currency pair tends to have very controlled movements and with good liquidity the risk is considered very low in this stock. During the last day, the currency pair moved HK$0.0546 between high and low, or 0.550%. For the last week the currency pair has had daily average volatility of 0.148%.

The GBP/HKD currency pair is overbought on RSI14 and the RSI has been falling for the last couple of days. This together with the fact that the currency pair is in the upper part of the trend poses a possible good selling opportunity for the short-term trader. However, one should note that some currency pairs may go long and hard while being overbought. Regardless, the high RSI together with the trend position increases the risk and higher daily movements (volatility) should be expected. A correction down in the nearby future seems very likely and it is of great importance that the currency pair manages to break the trend before that occurs.

Our recommended stop-loss: We hold a negative evaluation for this stock. No stop-loss is set.

Trading Expectations (GBPHKD) For The Upcoming Trading Day Of Monday 3rd

For the upcoming trading day on Monday, 3rd we expect GBP/HKD to open at HK$9.96, and during the day (based on 14 day Average True Range), to move between HK$9.93 and HK$9.99, which gives a possible trading interval of +/-HK$0.0277 (+/-0.28%) up or down from last closing price. If GBP/HKD takes out the full calculated possible swing range there will be an estimated 0.56% move between the lowest and the highest trading price during the day.

Since the stock is closer to the resistance from accumulated volume at HK$9.96 (0.02%) than the support at HK$9.94 (0.20%), our systems don't find the trading risk/reward intra-day attractive and any bets should be held until the stock is closer to the support level.

Is GBP/HKD currency pair A Buy?

GBP/HKD holds several negative signals and we believe that it will still perform weakly in the next couple of days or weeks. We, therefore, hold a negative evaluation of this currency pair.

Current score: -1.129 Sell Candidate Unchanged

Predicted Opening Price for GBP/HKD of Monday, June 3, 2024

The predicted opening price is based on yesterday's movements between high, low, and closing price.