Trade FOREX with FXCM

  • Award-Winning Platform
  • 24/7 Customer Support
  • Trade Directly on Charts
  • Free $50K Practice Account

Resources

FOREX ANALYSIS: British Pound Sentiment Warns of Further Weakness

By , Quantitative Strategist
27 December 2012 16:14 GMT
ssi_gbp-usd_body_Picture_6.png, FOREX ANALYSIS: British Pound Sentiment Warns of Further Weakness

GBPUSD – Retail FX traders have scaled back their British Pound short positions against the US Dollar (ticker: USDOLLAR), and the noteworthy shift in sentiment warns that the pair may have seen an important failure at $1.63. Last week we highlighted the fact that crowds were at their most net-short GBPUSD since the pair last tested the key range high, but long positions have since surged 37 percent while shorts are down 24 percent.

We see further risk of GBPUSD declines as crowds buy into weakness.

--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com

To receive the Speculative Sentiment Index and other reports from this author via e-mail, sign up for his distribution list via this link.

New to FX markets? Learn more in our video trading guide.

Contact David via

Twitter at http://www.twitter.com/DRodriguezFX

Facebook at http://www.Facebook.com/DRodriguezFX

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
Learn forex trading with a free practice account and trading charts from FXCM.

27 December 2012 16:14 GMT