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British Pound Forecasts Turned Bullish on Shift in Sentiment
Thursday, 29 January 2009 14:22:54 GMT  |  David Rodriguez, Quantitative Analyst
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GBP/USD ratio: -1.02
Trading Forecast: Bullish

Forex_Trading_2009-01-29_4

GBPUSD – Our forex trading strategies recently bought the British Pound against the US Dollar, as a sharp shift in forex sentiment signaled that further gains were likely.  The ratio of long to short positions in the GBPUSD stands at -1.04 as nearly 51% of traders are short. A net-short bias is a sharp departure from last week, when the majority of traders were aggressively long the pair. Indeed, GBP/USD short positions are 25.2 percent higher overnight and a massive 76.7 percent above levels seen last week.  Our SSI is a contrarian indicator, and the sharp drive towards GBP/USD short positions signals that further gains are likely. Discuss the British Pound with other traders in our forex forum.

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