SSI: The Speculative Sentiment Index
The SSI is reported Every Thursday at DailyFX.com and twice every trading day inside DailyFX PLUS.
British Pound Remains in Clear Downtrend
Receive the Weekly Speculative Sentiment Index report via PDF via David’s e-mail distribution list.
GBPUSD – The ratio of long to short positions in the GBPUSD stands at 1.61 as 62% of traders are long. Yesterday the ratio was 1.25; 56% of open positions were long. Long positions are 10.3% higher than yesterday and 23.7% below levels seen last week. Short positions are 14.0% lower than yesterday and 7.2% above levels seen last week. Open interest is 0.5% lower than yesterday and 30.5% below its monthly average. We use our SSI as a contrarian indicator to price action, and the fact that the majority of traders are long gives signal that the GBPUSD may continue lower. The trading crowd has grown further net-long from yesterday but moderated since last week. The combination of current sentiment and recent changes gives a further mixed trading bias.
See next currency section:USDJPY - Japanese Yen Sticks to Consolidation Pattern
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
Automate our SSI-based trading strategies via Mirror Trader free of charge
To receive the Speculative Sentiment Index and other reports from this author via e-mail, sign up for his distribution list via this link.
Contact David via
Twitter at http://www.twitter.com/DRodriguezFX