GBP/NZD short on Wednesday

In this article we will look at a particular behavior of the GBP NZD currency future, which has been fairly constant over time.

Since 2010, GBP NZD, excluding a marked up and down between 2015 and 2017, has had a stable trend in its price, as we can see from the following chart.

Figure 1 – The graph shows the price trend for GBP/NZD currency futures (source: https://www.tradingview.com/chart/?symbol=FX%3AGBPNZD)

Analyzing price changes for different days of the week, we identify a predisposition of GBP/NZD to have negative returns on Friday, accompanied by marked volatility.

Figure 2 – GBP/NZD’s Avearge tick movements per day

	Day of the week	Mean tick movements	Win ratio	Profit factor
1	Monday	-0,00026	0,52	1,05
2	Tuesday	-0,00041	0,50	1,07
3	Wednesday	0,00041	0,50	1,08
4	Thursday	-0,00059	0,52	1,10
5	Friday	-0,00179	0,57	1,37

As we can see from the table 1, the win ratio and profit factor values are higher than on other days, but more importantly, the volatility toward negative returns is largely larger than the average tick movements on other days – as can be clearly understood from Figure 2.

The resulting cumulative tick movements line will be as shown in the figure below.