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GBPAUD drops bullish rejection candle – trend remains intact

January 1, 2014 3:33 am GMT+0  in Forex Analysis

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gbpaud stable trend

Happy new year to all your traders, I hope 2013 was a year that you can reflect on, taught you lessons and helped evolve you as a trader ready to tackle the markets in 2014.

One market I’ve been involved with, actually the only market I’ve been involved with since DEC 2013 is the GBPAUD. When you have beautiful trending conditions like this, how can you not trade it. I’ve been long on an Inside Day breakout and still holding my trade because this trend just continues to show determination to move higher.

The New Year’s Eve candle has closed as a bullish rejection candle, communicating that higher prices a likely to develop as the market rejected moves lower into the trend mean. You can see when the market trends perfectly like this, the mean value acts as strong dynamic support and price just floats above it nicely.

Just advising caution trading during the holiday period, as the markets generally stagnate and can ‘spike’ randomly due to low liquidity.

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I have been involved with Forex trading for about 6 years now and after being disappointed with mainstream indicators I discovered price action trading relatively early in my career. Since then I have made price action the focus of my forex trading, embracing it with a passion. I don't like using indicators, Fibonacci or pivot levels, I only use the candlesticks to base my trading decisions on. A year into my Forex career became acquainted with Pearce and we started a Forex price action educational blog together at www.theforexguy.com. Since then we have been enjoying teaching new, aspiring traders how to approach the markets using only price action, positive return money management models and giving them a sound understanding of trading psychology.

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