GBP/USD Ratio: -1.63 Trading Forecast: Bullish
GBPUSD – The forex trading crowd has aggressively sold the British Pound/US Dollar pair, and our SSI indicator has provided an excellent contrarian signal to buy the GBP/USD. Though the SSI has incorrectly signaled that the GBP/USD may rally since 1.8000, increasingly net-short positioning actually led our SSI-based currency trading signals to begin buying aggressively at 1.5430. The net-short or net-long signal is clearly important, but it is likewise important to watch for shifts in trader positioning as a signal for shifts in currency price movements. The ratio of long to short positions in the GBPUSD currently stands at -1.65 as nearly 62% of traders are short. Positioning is effectively unchanged from yesterday, which gives us little reason to abandon our current GBP/USD-bullish forecast.