British Pound Forecast Remains Bearish
GBPUSD – Forex trading crowds remain heavily net-long the British Pound against the US Dollar, but a more recent moderation in crowd sentiment waters down our previous bearish bias. The ratio of long to short positions in the GBPUSD stands at 2.70 as nearly 73% of traders are long. Yet long positions are 3.3% lower than yesterday and 24.4% weaker since last week. Short positions are 16.4% higher than yesterday and 20.2% stronger since last week.
The fact that crowds remain aggressively net-long gives us an overall bearish bias, but a more recent moderation in sentiment suggests that declines may slow.
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