Thursday, 21 November 2013

GBPNZD Is that a touch of Negative (Bearish) Divergence I see?

Possibly, if you compare the tops here (provided the price does not move significantly higher). Seeing the two red dots I have painted on both the RSI below the price action and the price chart. As a bonus, both 240 minute Bollinger Bands have been pierced, which to me, means possibly a heavily overbought situation on the pound vs. the kiwi.

I am now holding with a stop above, and my target would be lower by a couple hundred pips, but is subject to change, as with the stop loss. As this would be a positive carry trade, the risk reward has an added bonus of earning daily regardless of price action. Price at the time of this writing was 1.9633/40 (where the dot is approx).

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