British Pound Forecast to Drop Further
There are 1.22 traders long the GBPUSD for every 1 that is short. This is nonetheless a noteworthy change from yesterday when the same ratio was at 1.56, and it’s worth pointing out that long positions fell 8.1% overnight. Short positions are 17.7% higher than yesterday, and it seems as though crowds may be shifting to selling the recent GBP bounce.
Broader momentum favors GBPUSD losses, but traders should watch crowd sentiment. If crowds flip to net-short the GBPUSD, our sentiment bias could turn bullish.
How do we interpret the SSI? Watch an FXCM Expo Presentation that explains the SSI.
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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