GBP/USD Ratio: -1.25 Trading Forecast: Bullish
GBPUSD – Our forex positioning indicator continues to forecast GBP/USD gains, but the accuracy of said forecasts has been questionable as of late. Indeed, traders actually went net-short the GBP/USD from the 1.8000 mark—typically a strong signal to buy the currency pair. Of course, the British Pound has fallen sharply against the US Dollar in that stretch—leaving our SSI-based forex trading signals unprofitable. The ratio of long to short positions in the GBPUSD stands at -1.26 as nearly 56% of traders are short. Yesterday, the ratio was at -1.30 as 56% of open positions were short. In detail, long positions are 14.1% higher than yesterday and 31.6% weaker since last week. Short positions are 11.2% higher than yesterday and 37.1% weaker since last week. The SSI is a contrarian indicator and signals more GBPUSD gains. Our technical forecast for the GBPUSD likewise predicts that the pair is likely to bounce before further declines.