British Pound Sentiment Shows Sell Signal
GBPUSD – A noteworthy jump in GBPUSD long positions warns that the pair could continue its very recent declines. Trading crowds had remained net-short the GBPUSD from early April into the beginning of may, giving contrarian signal to stay long. Yet the SSI ratio of long to short positions in the GBPUSD stands at 1.61 as nearly 62% of traders are long. Yesterday, the ratio was at 1.31 as 57% of open positions were long. In detail, long positions are 0.3% higher than yesterday and 21.8% stronger since last week. Short positions are 18.5% lower than yesterday and 10.9% weaker since last week. Open interest is 7.8% weaker than yesterday and 0.9% above its monthly average. The strong build in long positions gives contrarian signal to sell into further GBPUSD declines.
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