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GBP/USD: Jump in Long Orders Suggests GBPUSD May Continue Falling

Thursday, 29 November 2007 16:24:25 GMT

Written by David Rodriguez, Currency Analyst

GBP/USD Ratio: -1.03
Signal: Bullish

Currency   Last Week   %Long   %Change Positions Outstanding

GBP/USD       -1.43               49%                   -3.81%

2007-11-29_3

GBPUSD – The FXCM SSI shows similar signs for potential reversal in the GBPUSD, with only 51 percent of traders short the currency pair. This represents a 52.1 percent weekly surge in long positions and a similarly pronounced 28.7 percent drop in short positions. Though the headline index remains very marginally bullish for the GBPUSD, the shift in sentiment suggests that we may see further short-term correction before any substantive rallies. Likewise significant, a flip to SSI net-long on the GBPUSD typically precedes sizeable declines.

Written By David Rodriguez, Currency Analyst for dailyFx.com

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