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British Pound May Have Topped on Sentiment Shift
Thursday, 21 May 2009 14:16:28 GMT  |  David Rodriguez, Quantitative Strategist
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GBP/USD ratio: -1.67
Trading Forecast: Bullish

2009-05-21_ssi_gbp

GBPUSD –Our forex trading strategies bought the British Pound against the US Dollar in near-unison, with 3 separate systems remaining long until the most recent pullback. As it stands, two systems remain long while one has closed out at a respectable profit. It seems that the most recent shift in sentiment points to a potential turnaround in the high-flying pair. The ratio of long to short positions in the GBPUSD stands at -1.67 as nearly 63% of traders are short. Yesterday, the ratio was at -2.80 as 74% of open positions were short. In detail, long positions are 13.1% higher than yesterday and 20.9% weaker since last week. Short positions are 32.3% lower than yesterday and 21.1% weaker since last week. The sharp drop in short orders gives early signal that the GBP/USD may in fact be topping, and as such our forecast remains neutral-to-bearish through time of writing.

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