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Sterling Positioning Near Flip, Bullish Reading May Be On The Horizon

Thursday, 24 January 2008 16:09:36 GMT

Written by John Kicklighter And Antonio Sousa, Currency Analysts

GBP/USD Ratio: 1.03
Signal: Bearish

Currency Last Week Present* % Long % Change in Positions Outstanding Signal
GBP/USD 1.39 1.03 51% 2.64% Bearish

SSI3_1-24

GBPUSD - The ratio of long to short positions in the GBPUSD stands at 1.03 as nearly 51% of traders are long. Yesterday, the ratio was at 1.64 as 62% of open positions were long. In detail, long positions are 13.0% lower than yesterday and 14.4% weaker since last week. Short positions are 37.9% higher than yesterday and 29.1% stronger since last week. Open interest is 6.3% stronger than yesterday and 10.8% above its monthly average. With open interest growing and the SSI reading close to flipping, the rebound in GBPUSD spot is finding support from sentiment. A break higher will likely come with a run on short stops while simultaneously triggering long positions a potentially significant shift in the SSI and positioning.

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