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GBPCAD Hits Target 1 – GBPAUD Interesting

Market Analysis
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GBPAUD, Daily               

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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Stuart Cowell

Market Analyst

HotForex

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