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British Pound Forecasts Turned Bullish Following BoE Decision
Thursday, 05 February 2009 13:58:12 GMT  |  David Rodriguez, Quantitative Analyst and Antonio Sousa, Chief Strategist
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GBP/USD ratio: -1.20
Trading Forecast: Bullish

020509_ssi_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.  Yet we likewise note that bullish developments out of the recent Bank of England rate decision has led many traders to buy the GBP/USD aggressively; long positions are a sharp 29.1 percent overnight. This compares with a similarly dramatic 21.3 gain in short orders—tempering the shift in sentiment. Our contrarian Speculative Sentiment Index analysis tells us that the net-short GBP/USD bias signals that further short-term gains are likely. Indeed, we remind traders that short positions are a massive 90.4 percent higher sine last week.

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