GBP/USD - BEARISH RSI DIVERGENCE | LOW RISK / HIGH REWARD
- GBP/USD has rallied for weeks and is very over-extended
- RSI Divergence is a fairly reliable indication for a trend reversal
- Confirmation of RSI Divergence suggests that it is safe to open a short position
Daily Chart
[I]Targets & Key Levels[/I]
VERDICT: GBP/USD due a correction and confirmation of bearish RSI divergence suggests opening a short position at current levels.
Trade active
Price has moved as expected and has moved 120 points. This will be a swing trade (medium-term trade) so this position is expected to be held for potentially weeks until target(s) has been reached.
Stop has been adjusted and will be trailed as price action progresses further.
Trade closed: target reached
Full position closed @ +425pts. Awaiting next opportunity to short after an upwards correction of sufficient magnitude.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.