British Pound to Strengthen Further
GBPUSD – Forex trading crowds turned net-short the British Pound against the US Dollar when the pair traded near the $1.5450 mark, giving consistent contrarian signal that the pair could continue its advance. The ratio of long to short positions in the GBPUSD stands at -2.47 as 71% of traders are short. In fact, trading crowds continue selling as the number of traders short grew 12 percent overnight; long interest remained roughly unchanged.
When trading crowds are net-short and continue selling, we often see price continue higher and remain bullish the British Pound against the US Dollar.
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--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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