British Pound Could Strengthen versus USD, Euro
The ratio of long to short positions in the GBPUSD stands at -2.17 as nearly 68% of traders are short. This is a moderation from yesterday when the same ratio was at -3.04; long positions jumped 14.5% overnight while shorts are 18.4% lower.
When trading crowds are net-short but start buying, the SSI gives only a modestly strong signal that the pair may continue higher. In this case we might expect the GBPUSD to consolidate in the typically illiquid end to the trading year.
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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