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Pound May Depreciate Further Against US Dollar

Thursday, 07 February 2008 17:33:44 GMT

Written by David Rodriguez, Currency Analyst

GBP/USD Ratio: 1.44
Signal: Bullish

Currency Last Week Present* % Long % Change in Positions Outstanding Signal
GBP/USD -1.04 1.44 59% 19.30% Bullish

SSI3_2-7

GBPUSD – Our GBPUSD SSI reading flipped into net-long territory just two weeks ago and predicted a noteworthy decline in the currency pair. Since then, the ratio has only grown further into net-long territory, as long positions are 11.5% higher than yesterday and 18.5% stronger since last week. Short positions are 6.2% lower than yesterday and 20.3% stronger since last week. Open interest is 3.6% stronger than yesterday and 20.5% above its monthly average. The SSI is a contrarian indicator and signals more GBPUSD losses.

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