British Pound Forecast Unclear Amidst Shift
GBPUSD – Forex trading crowds remain short the GBPUSD, but an overnight shift in positions leaves our SSI ratio near neutral. The ratio of long to short positions in the GBPUSD stands at -1.30 as nearly 56% of traders are short. Yesterday, the ratio was at -1.57 as 61% of open positions were short. In detail, long positions are 9.9% higher than yesterday and 25.9% stronger since last week. Short positions are 9.5% lower than yesterday and 7.6% weaker since last week. Open interest is 1.9% weaker than yesterday and 6.7% below its monthly average. Choppiness has made it difficult to get a good feel for GBPUSD price action, but the recent build in longs gives early contrarian signal that the pair could soon reverse.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.