GBPUSD – Retail FX traders have continued to scale 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. Since last week, total short interest has fallen 11 percent while longs are up 20 percent.
We see further risk of GBPUSD declines as crowds buy into weakness.
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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