British Pound Forecast Mixed as Sentiment Reverses
GBPUSD – The ratio of long to short positions in the GBPUSD stands at -1.18 as nearly 54% of traders are short. Yesterday, the ratio was at -1.53 as 60% of open positions were short. In detail, long positions are 21.2% higher than yesterday and 48.8% stronger since last week. Short positions are 6.5% lower than yesterday and 7.3% weaker since last week. Open interest is 4.5% stronger than yesterday and 7.5% above its monthly average. Sharp jump in long positions moderates our otherwise bullish GBPUSD bias, and indeed one of our algorithmic trading strategies is now short GBPUSD while two others are long. Clear indecision weakens our conviction on any short-term forecasts.
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