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British Pound Expected to Drop Against US Dollar
Thursday, 15 January 2009 14:08:02 GMT  |  David Rodriguez, Quantitative Analyst and Antonio Sousa, Chief Strategist
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GBP/USD ratio: 1.24
Trading Forecast: Bearish

01-15-2009_4

GBPUSD – Our forex trading strategies are currently net-short the British Pound against the US Dollar, as a shift in forex trading sentiment signals that further short-term losses are likely. Forex trading crowds remain net-long the GBP/USD, as 55 percent of traders in our sample are currently long. Said positioning is roughly unchanged from yesterday, when 56 percent of traders were long. In detail, long positions are 14.9% higher than yesterday and 32.1% stronger since last week. Short positions are 17.7% higher than yesterday and 16.1% stronger since last week. All else remaining equal, we believe that the aggressive growth in forex trading crowd long positions suggests that the GBP/USD may continue to weaken through the near term. Discuss the British Pound with other traders in our forex forum.

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