On Friday (October 21) I posted two short term rebound trades for sterling, GBPCAD and GBPCHF. The GBPCAD went on to target 1 at close on Friday for a net gain of 160 pips. This allowed me to add to the sentiment today with a similar position on GBPAUD. The GBPAUD was not as positive as the GBPCHF and GBPCAD on Friday, however, the close on Friday confirmed the entry and with GBPCAD reaching target 1 this reduced the exposure to sterling. Last Thursday GBPAUD created a tweezer bottom and short term floor following the September down trend for the pair. Entry was today on a retrace of Fridays close at 1.6020, target 1 is a a little less than the 14 Day ATR and Target 2 around the confluence of Fibonacci levels from the higher time frames downward move and the 20 DMA at 1.6335. The Parabolic SAR also turned positive on Thursday; however, the higher time frames are still in down trends so this position is against the prevailing trend.
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About Janne Muta, HotForex’s Chief Market Analyst
Janne Muta is a seasoned industry professional with over 16 years experience in the global markets. Originally from Finland, Janne has worked for institutions in both Helsinki and London as an institutional fund manager, global market analyst and FX educator.
Traders and fund managers from around the world have benefited greatly from Janne’s technical analysis methods. The indicators and price action based trading models he has developed, have, after rigorous testing, proven to be invaluable in identifying high probability trades.
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